Question:
Is gifting my son a share of my second home to avoid capital gains tax acceptable to HMRC?
Arthur Weller replies: I am afraid not. Any gift to a connected person (e.g. a son) is treated like a sale at market value. See www.hmrc.gov.uk/manuals/cgmanual/CG14530.htm. So even though you may receive no money from your son, HMRC will treat the transfer as though you did, and you will have to pay capital gains tax.
Is gifting my son a share of my second home to avoid capital gains tax acceptable to HMRC?
Arthur Weller replies:
I am afraid not. Any gift to a connected person (e.g. a son) is treated like a sale at market value. See www.hmrc.
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