Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 4 weeks ago 47
I know that if I sell a property (never lived in it) to my son for what I paid for which was £49k and it is worth £175k that it will be treated as a gift and as such Capital Gains Tax (CGT) will be payable and IHT will also come into it.
However, if I sell it to a friend for £49k who is no relation to me at all (and I understand the risk of him then owning it, so do not need this pointing out) is it still treated the same for CGT purposes as being sold under value?
The friend would live in it for 12 months or so as his main residence (he currently has no main residence or buy to lets) and then sell it on open market and at a point in the future would give my son any profit made, keeping a little for himself.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More