How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Thomas Your Own Question
Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7430
Experience:  BA (Hons), PgDip, Practising Solicitor
Type Your UK Property Law Question Here...
Thomas is online now
A new question is answered every 9 seconds

I have a large valuable house, and want to give it to my daughter

This answer was rated:

I have a large valuable house, and want to give it to my daughter and her husband, and live in their house rent-free, hopefully for seven years. Do any taxes have to be paid, like stamp duty, apart from potential Inheritance Tax in England?

When you say you wish to live in "their" house, do you mean a house separate to the one you propose to gift to them OR do you mean you propose to live in the house that you shall gift to them for 7 year after the date of the gift?

Customer: replied 4 years ago.
My house is in a different town from my daughter's

Thanks for your reply.

If you gift the property to them for nil consideration then there will be no Stamp duty for them to pay because there is no purchase price.

For the purpose of capital gains tax they will be taken to have acquired the property for the market value as at the date of gift, rather than the nil value that it was actually transferred to them for. Therefore when they dispose of it they may incur a chargeable gain depending on whether the value has increased. I would suggest getting a valuation as at the date of gift for these purposes and for them to retain it.

There will be no income tax charged obviousy because there is no income relevant here.

Provided the transfer is for nil consideration and you do not reserve a benefit over the property and do not die within 7 years then the assets will not be included without your estate for IHT rules.

Obviosuly you have to ensure that the registered title to the property is actually transferred to them to give effect to this. A solicitor will be able to arrange this for you for around £200+VAT

Please remember to RATE my answer OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE or above if you are satisfied that you have received the correct legal advice (even if it is not the answer you wanted to hear), otherwise I do not receive any credit for answering your question.

If you are not willing to rate my answer as OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE then allow me to assist further by replying asking what clarification you require rather than rating my answer at levels below.

If you wish for me to provide you with further guidance on any question you may have in the future then please submit a further question to the board requesting me either by my profile or by marking your question. “FAO Tom”.

Kind regards,

Thomas and other UK Property Law Specialists are ready to help you

Related UK Property Law Questions