A family member has two houses in Brighton. He wants to gift one to his daughter. Is it true that there will not be any tax liability after seven years and is there any tax due on the property as no money has been exchanged?

Arthur Weller replies:
As far as inheritance tax is concerned, if the father lives for seven years after the date of the gift, there will be no IHT to pay. As far as capital gains tax is concerned, it depends on the present market value of the property. If that value is more than the amount the father originally paid for the property, he will be making a capital gain, even though no money is being exchanged now. As far as stamp duty land tax is concerned, since no money is being exchanged there is no SDLT to pay.