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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 2023/2024 tax year the Capital Gains Tax rates for property are:
You also have a £3,000 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 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 gifted property and were liable for CGT had to use only the Real Time Capital Gains Tax Service.
What this means:
We can help. We offer one-off, personal tax advice from an accredited accountant. Speak to CGT accounting expert and clear up any confusion. Just £119 per consultation with no strings attached. Learn more.
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