Hi all - some guidance needed, please, and I hope it helps others as I have the feeling this is becoming a more regular thing to do by us baby boomers to help our millennials.
We have a small studio-flat that is impossible to sell and needs some renovation work. We've been renting it out for a few years and I'm now ready to stop all that sort of thing and lead a less stressy life (jinxed myself, again, I'll bet).
I'd like to gift it to my DD so that she can take over renting it and later do it up at her expense etc.
I've been trying to find out from HMRC websites, and also a long (wasted) phone call to them, about the taxation due on such a gift.
I've had a surveyor give it a valuation and on that basis, if we had sold it, we would be due to pay about £10,000 in Capital Gains Tax (assuming it could sell - when it actually didn't over several months).
However, after reading another thread, here, I got the impression that if you gift a property to a close family member, you don't have to pay CGT, but it does, however, stay in your estate for inheritance tax purposes (the seven year rule). That would be fine if that were the case.
I was expecting to pay CGT, but obviously if I didn't have to and the property instead stayed in my estate for up to 7 years, then that would be preferable. I wouldn't have to pay up front.
Does anyone have an idea on this situation? Can you gift a property that is not your main home and not pay CGT, but leave it as part of your estate for inheritance tax instead if due at the time of death?
Thanks all. x
[BTW - sorry, username changed. ]