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Tax implications of gifted property

Q: My client wants to gift a house to one of their children what are the tax consequences?

A: This will be a disposal for Capital Gains Tax (CGT) and the proceeds will be deemed to be the market value of the property at the date of the gift. Other than using the market value as the proceeds the gain is calculated in the normal way and can qualify for any reliefs, such as Principle Private Residence Relief, as well as the Annual Exempt Amount.

Stamp Duty Land Tax (SDLT) is not charged on a gift of land or property if there is no chargeable consideration. There is no market value rule as there is for CGT unless the gift is to a connected company.