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Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7620
Experience:  BA (Hons), PgDip, Practising Solicitor
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I have a large valuable house, and want to give it to my daughter

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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 5 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

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Kind regards,

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