What are the tax implications of gifting property to adult children?
Q: My client owns two properties, which are mortgage free. The properties are currently rented out. They are thinking of gifting one of the properties to their adult children. What are the tax implications?
Capital Gains Tax:
A gift does not reduce any potential capital gains tax (CGT) bill. For tax purposes, transaction between connected persons are treated as market value disposal (TCGA 1992, S18).