Tax on gifted sale of site to daughter?Make Text Bigger
My wife and I are in our 70’s and our property has a sizeable garden which we want to split to allow our daughter and partner to build their own property. We will be gifting the property to them which at this stage does not have planning permission, but this will be forthcoming in due course.
The new site has access to its own road frontage and there will be no need for rights of way or sharing of services.
We will prepare a formal split of the title through a solicitor and the bank has granted its approval as we have a mortgage, but soon to enter equity release to pay off the mortgage. The ER company has stated that they will not allow release of funds until the split is complete.
Can anyone advise on what the tax implications are since there is no payment being made, and will the new property being sold be assessed for capital gains on an assumed value, in spite of it being a gift.
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