Do I need to pay capital gains tax if I gift property?

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.

You don’t need to pay CGT if:

  • You’ve lived there the entire time (it was your home)
  • Or you give it to your spouse
  • Or you put it into a trust for the benefit of your child. In this situation, it will be deferred until your child sells the property.

How much CGT will I have to pay?

For the 2019/2020 tax year the capital gains tax rates for property are:

  • 18% for your entire capital gains profit from property if your overall annual income is below £50,000
  • 28% for your entire capital gains profit from property if your overall annual income is above the £50,000 threshold

You also have a £12,000 capital gains tax allowance. This means that:

  • Your capital gains up to £12,000 are tax free
  • If you made less than £12,000 in profit you don’t need to pay any tax.

Check our our capital gains tax calculator to work out how much you need to pay.

Can I sell my property “at a friendly low price” so I don’t pay CGT?

Don’t.

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.

Are there any other taxes?

Yes: stamp duty, inheritance tax, and sometimes rental tax.

Read more in our guide to gifting property.

How do I pay CGT for gifted property?

It’s very simple.

You can either submit a Self Assessment tax return yourself with HMRC, or sign up to TaxScouts. We can get it done easily, 100% online, and for only £119 – flat fee.

Don’t forget that you have to file the tax return and pay the capital gains tax by 31st of January of the tax year in which you gifted the property.

Need help with your tax return?

Get your self assessment prepared for you online by certified accountants for £119

Online self assessment preparation assisted by professional accountants

How TaxScouts works

Simple online tax assessment

1. Simple online tax assessment

Our online tax-bot will go over your tax situation and will make sure you won’t overpay your taxes.

Chat to human advisors

2. Chat to human advisors

You can talk to one of our tax assistants at any time during the process when you have any questions.

We’ll sort your documents online

3. We’ll sort your documents online

We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.

Everything gets prepared for you

4. Everything gets prepared for you

Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.

"Absolutely outstanding"
Very quick turnaround, all my questions answered almost immediately and brilliant value.
Aimee J
"Mad not to use it"
Took all of the hassle out of doing a tax return. You would be mad not too use this service.
Weslie
"Very fast"
Very fast and gave good advice I will be using every year
Wayne L

Who our service is for

First time tax filers

We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.

Construction workers

We'll prepare your self assessment and help to maximise your CIS tax refund. We have the lowest fees in the industry and you don't have to pay up front if you're eligible for a refund.

People living overseas

Our service allows people living abroad to prepare their income tax return online. We are able to process all returns regardless of your current country of residence.

Company directors

UK company directors are required to file their self assessment annually. TaxScouts handles this through a simple online process.

Landlords

Long Lets, Airbnb, Capital Gains. TaxScouts will sort out your self assessment and take away the worry of tracking all the recent tax changes.

Self-employed

TaxScouts ensures the self employed don't overpay on their taxes. We'll help you benefit from all the tax breaks and deductions that can be applied to your return.

And for everyone else who needs to do their self assessment

At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.

Let's start by creating your account

What happens next

  • We'll ask you a couple of short questions
  • Then we'll tell you what documents we need
  • Finally one of our qualified accountants will file your tax return