I want to gift my main home, which is worth over £2mn and doesn't have a mortgage, to my daughter. And I would like to buy another property as my main home at the same time.
Will I or my daughter have to pay capital gains tax (CGT) on the transfer if and when my daughter sells this property? Also, am I right in thinking that this gift will be liable to inheritance tax (IHT) if I die within seven years of the date of making it?
I am aware that I will have no future interest in the property that has been gifted. But what is the position if I move back into the property, and what if I pay market rent for the part which I occupy? And what would be the position if I become infirm and needed support from my daughter, so moved back in?
Or are there any other ways to gift the property and any other tax issues to take into account? IL
Stefanie Tremain, partner at Blick Rothenberg, says:
When making lifetime gifts of assets it is important to consider both the CGT and IHT implications.