This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Could a portion of any capital gain be gifted to me by my child?

Question:

If I loaned a substantial amount interest-free to help my child buy a house to be repaid in full on its subsequent sale, could a proportion (relative to the original loan to value) of any capital gain on the sale be gifted to me by my child?

Arthur Weller replies.
If I understand correctly, your child owns this house. If so, if you look at www.gov.uk/hmrc-internal-manuals/capitalgains-manual/cg10720%20 you can see that the capital gain is only attributable to your child, and not to yourself, even if you were a lender entitled to the asset by way of security (e.g. you had a charge on the asset).

If I loaned a substantial amount interest-free to help my child buy a house to be repaid in full on its subsequent sale, could a proportion (relative to the original loan to value) of any capital gain on the sale be gifted to me by my child?<>

...


This question was first printed in Tax Insider in June 2017.