Hi,
I wonder if anyone has experience of gifting part of a rented house to children and has advice ?
We (my wife and I) have rented-out a house (which used to be our home) for nearly six years. It's increased in value, so there would be capital gains tax when we sell. There is no mortgage attached.
We have two children. the youngest will be 18 in April.
I'm thinking of gifting 10% of the value of the house to both children and my wife - so the split in ownership would be ideally 60% (wife), 10% (eldest child), 10% (youngest) and 20% (myself).
Rental income (and share of costs) after that point would then be split according to their share, and they would need to declare to HMRC.
My understanding (gov.uk "capital-gains-tax what-you-pay-it-on") would be that I pay capital gains be paid in the year of the gift was given to the children ?
i.e. suggesting that I should get the house valued.
(gov.uk "capital-gains-tax/gifts" suggest that my wife would pay CGT on the 60% of her share when the house is sold)
Are there any issues I haven't foreseen (other than one child refusing to take part in a sale!) ?
I will take advice from a solicitor nearer the time, but thought it useful to gain the wisdom of the lemon family.
Thanks!
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Gifting part of a rented house
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Re: Gifting part of a rented house
happyemailer wrote:Hi,
I wonder if anyone has experience .......... I will take advice from a solicitor nearer the time, but thought it useful to gain the wisdom of the lemon family.
Thanks!
Moderator Message:
Just a short note to say I've moved this to TAXES etc. regards, dspp
Just a short note to say I've moved this to TAXES etc. regards, dspp
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