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JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11271
Experience:  30 years as a practising solicitor.
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Can you leave your property to your children before you die

Customer Question

Can you leave your property to your children before you die to avoid capital gains tax and still live in the property ?
Submitted: 4 years ago.
Category: Scots Law
Expert:  JGM replied 4 years ago.
Thank you for your question.

If you give the house to children there is no capital gains tax payable until the children come to sell it. They would then potentially incur a capital gains tax charge if they hadn't lived in the house.

However I wonder if you are actually referring to inheritance tax as opposed to capital gains tax. Normally if you transfer a house or any asset to your children, if you then live for a further seven years there is no inheritance tax payable on the asset.

However, you cannot get out of paying inheritance tax if you give away your home but continue to live in it rent free, as, under these circumstances, the taxman still considers it to be part of your estate. But you can give your home away to your child if they live with you, as long as they live in the property until you die or you go into a care home, and both of you must contribute to the running costs of the property.

Happy to discuss further.

I hope this helps. Please leave a positive response so that I am credited for my time.
Expert:  JGM replied 4 years ago.
You have left a poor service rating where your question was answered correctly in addition to which you were invited to reply with any outstanding issues. Please let me know how I can assist you further.