Transfer Of Property And Cgt

[bassguitar 10]

My niece  had a property transferred to her ownership some years ago at its market value. The document declared that no money was changing hands.

Since then she has managed to pay for it but this hasn't been declared to the land registry office.

Should she let them know this or is it not important?

When she sells the property, will capital gains tax be due on the profit from the value stated on the transfer document?

[CLECKHECK 10]

Some years ago I transferred ownership of a property to a needy member of my family who simply paid me enough to cover my costs in so doing.  I had to pay capital gains tax on the value of the property at the time of the sale and that value was determined by the district valuer (I think that was his title) who was appointed by the Inland Revenue.

[bassguitar 10]

Hi Cleckheck

There was no capital gains involved apparently at time of transfer as the property has been purchased shortly before the transfer and had only a small gain which was reflected in th transfer value.

the question is on the gain when the rrecipient sells the property. Does th gain go from the value at time of transfer, or from Zero if they paid nothing towards it? Do you know?

[CLECKHECK 10]

Sorry, I don't know.  On reflection our property deals were different.  I had been the owner for some time (not myself residing there) and when I transferred the ownership to my relative the Inland Revenue valued it at the time of transfer (ignoring the fact that I was in fact making a LOSS) and deemed that I had made a GAIN because the value at the time of transfer was greater than the value at the time of my initial purchase.

[Jeffrey Shaw 90]

As I cannot answer the question, I can suggest asking HMRC's Forum:

https://community.hmrc.gov.uk/forums/customerforums/ifp

Edited December 8, 2020 by Jeffrey Shaw

[bassguitar 10]

Thanks Jeffrey 

i will try that

 

[spider1 11]

Value hen she bought it say  £50/000 to price when she sells  is subjert to  C G TAX unless this is your main residence /   less expences  plus an allowance  this needs a soilcitor  . Dont know if you can sell it to  one of your children cheap and them live in it as a main residence for a number of years ask a solicitor   If its your main residence should be any c g  t  but should see a solcitor get sotted 

Edited December 15, 2020 by spider1

[topflat29 10]

On 07/12/2020 at 18:50, bassguitar said:

My niece  had a property transferred to her ownership some years ago at its market value. The document declared that no money was changing hands.

Since then she has managed to pay for it but this hasn't been declared to the land registry office.

Should she let them know this or is it not important?

When she sells the property, will capital gains tax be due on the profit from the value stated on the transfer document?

If the property is registered under her own name  at Land Registry , it  does not matter now about reporting  her   payment to Land Registry.

 

When she sells the property, the capital gain will be calculated from the sale proceeds minus the market value when it was transferred to her.

[Jeffrey Shaw 90]

If she has been the owner-occupier throughout, there's no CGT payable at all.