my sister and i own a house worth 120.000.00 if i gift mysister my half what is the tax liablity
System of Law: Northern-Ireland
Hi.Can you tell me what the property cost you and your sister to buy please. If you inherited it or it was given to you, what was the value at the date of death of the individual who left it to you or the value when it was given to you? Has it ever been your main home during your period of ownership?
130.000.00 its my sisters main home.i think it may be as low as a 100.000.00 now
Thanks.If you bought it between you for £130,000 and you gift your half-share to your sister, you will be deemed to have sold that half-share to her for the open market value. So, assuming the value of the property is less than you paid for it, you cannot possbly have any Capital Gains Tax liability.Let me know if you have any further queries.
will my have to pay any gift tax,
You won't pay any Inheritance Tax in your lifetime. Should you die within seven years of making the gift, its value will be included in your estate for IHT purposes so IHT may be payable if your estate is worth more than £325,000.
what i want to know is will my sister have to pay any Capital Gains Tax
No.Your sister cannot have a Capital Gains Tax liability as she isn't selling anything.I f she sells it in the future, assuming it has been her main home since she bought it with you and it continues to be so until she sells it, she will not have to pay Capital Gains Tax unless the law changes.TonyTax41100.4455446759
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