Paul Baker

Registered with Property118.com
Wednesday 7th May 2014


Latest Comments

Total Number of Property118 Comments: 33

Paul Baker

11:22 AM, 11th March 2021, About 6 months ago

Transfer property to minimise CGT?

Hi Falco,
You can gift or transfer part or all of the capital value of the asset between spouses without any CGT arising but only if married (or civil partnership). All that is happening though with the capital gain is that it is only really being postponed until the time comes when the asset eventually passes to someone other than the couple, because if Mr bought it at £100k and transfers it to Mrs ten years later when it is worth £300k, HMRC will simply treat Mrs as having acquired it at £100k. You don't therefore lose the gain but you can plan more efficiently as you can utilise 2x CGT allowances if in joint names when you come to dispose of it or you may want to gift/transfer an unequal percentage to the spouse if for example one is a non-taxpayer & the other a high rate taxpayer. The other way to avoid CGT currently is just hang on to it until you die(!) when the CGT will disappear but the asset will be assessed for IHT.... Read More

Paul Baker

14:09 PM, 1st March 2021, About 7 months ago

Transfer property to minimise CGT?

Reply to the comment left by Paul Shears at 01/03/2021 - 13:47
If that wasn't the case, then people would 'sell' their properties to their children at below market value without incurring an CGT and successfully passing the asset down the family line. Accordingly if you simply gift the property to your children it will still be treated as a disposal at full market value.... Read More

Paul Baker

13:38 PM, 1st March 2021, About 7 months ago

Transfer property to minimise CGT?

Just to add, as a Financial Adviser, if you dispose of an asset at below market value, HMRC will still use the true market rate to determine what CGT is payable. So any gift, sale, transfer or disposal will be considered for CGT purposes at full market value, although transfer in full or part between spouses is not treated as a disposal with the original acquisition cost rolling forward to the spouse.... Read More

Paul Baker

11:31 AM, 4th January 2021, About 9 months ago

Tax rebate for eviction legal fees?

I would include them under Legal & Professional Fees, and have done so last year when I went through an eviction.... Read More

Paul Baker

12:29 PM, 21st January 2020, About 2 years ago

Do I pay CGT if I sell to a friend at minimum value

Thanks for the excellent explanation Silversurfer, I agree, you are of course correct, the acquisition cost would indeed be the market value of each gift - apologies I was having an off day!
A fascinating concept and one which seems to make perfect sense. If it is a rental property are you allocating the income/expenditure as per the % split? I believe I read somewhere that you don't have to and it could be shared however you chose between you (although I may be having another off day!) :-)... Read More