CGT minimisation on family inherited property?

by Readers Question

8:46 AM, 19th April 2018
About 3 years ago

CGT minimisation on family inherited property?

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CGT minimisation on family inherited property?

After the death of our parents, my brother and I inherited a property which we have been renting for almost 30 years and considering selling for as many years. It is still registered to just my brother and I.

We both have families now with two kids each, the youngest soon to turn 16.

Our proposed plan: If the property was reregistered with the land registry in all eight names we could surely use eight times CGT allowances? This would then minimise the CGT liability and reduce it to a manageable amount, spread between 8 of us?

Lastly, we’re all basic rate tax payers.

First question – at what age is a CGT allowance given?
What have I overlooked?
Is there a better way to realise our gains?

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Paul Shears

9:00 AM, 20th April 2018
About 3 years ago

I was approached by SJP as a prospective employee.
This was not at my instigation I’d like to point out!
My brief experience totally reinforced the appalling web feedback and your own.
They target the desperate and the naïve.
They could not even get their “story” straight between one employee and another regarding fees, remuneration and support.
They will take anyone as an unqualified sales person who looks and sounds the part.

Mark Alexander

9:01 AM, 20th April 2018
About 3 years ago

Reply to the comment left by Darren Peters at 19/04/2018 - 10:27
In response to the original question at the top of this page.

First, I agree with Darren Peters.

To expand on what he has said, the two current owners could hold the property for the benefit of a family partnership. Initially, just a small percentage of the beneficial interest could be gifted to each incoming partner. With careful planning it may be possible for the gifts to crystallise less capital gain than each legal owners annual CGT exemption allowance. This process could be repeated annually but eventually this might trigger SDLT based on the cumulative value of the linked transactions. Without knowing more about the probate value when the property was inherited and the value now it would be dangerous for me to make more comprehensive suggestions.

A full fact find and private consultation is ideally required. Please see the link below.

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