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:
For the 2019/2020 tax year the capital gains tax rates for property are:
You also have a £12,000 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 tax.
Read more in our guide to gifting 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.