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If you gift someone a property, you will usually have to pay Capital Gains Tax (CGT) if it increased in value since you bought it.
It’s as if you sold the property for a profit, then took that money and gave it to them as a gift instead.
You don’t need to pay CGT if:
For the 2020/2021 tax year the Capital Gains Tax rates for property are:
You also have a £12,300 Capital Gains tax allowance. This means that:
Check our our Capital Gains Tax calculator to work out how much you need to pay.
If you’re giving it to a “connected person” (children, parents, siblings, etc.), HMRC will still ask you for CGT as if the property was being paid for at market value.
Oh, and you might also get a fine.
Yes: stamp duty, inheritance tax, and sometimes rental income tax.
Read more in our guide to gifting property.
Until April 2020 you could either:
However, starting from April 2020, all UK tax residents who gift property and are liable for CGT will have to use only the Real Time Capital Gains Tax Service.
What this means: