CGT implications on gift from father to son
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archambault
Apprentice
Joined: 27 Jun 2007
Posts: 10
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 Posted: 10/04/07 - 07:08 Post subject: |
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| My father is a very old man and wants to give me the property as gift. He is seriously ill, thinking that he will die in a few months. This is the reason he is considering property issues. At the other hand my brother offered him to buy property, thinking that he will continue to live in the house till death. What will happen if I want to sell gifted property later for example after 5 years? Can you tell me what the gift with reservation is? Tell me also something about CGT implications on gift from father to son. |
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patsy
Apprentice
Joined: 14 Apr 2006
Posts: 7
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| Posted: 11/21/07 - 03:05 Post subject: |
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| Reservation gifts are those which later, having made, continue to make benefit. This is the best example of gifting the property to children, in this case son, while the father continues to live without paying the market value rent. For the purpose of calculating inheritance tax they continue to be considered towards estate worth. Anyway as you brother and father are connected, the property sale would be deemed at market value. As it was his main residence, there will be no CGT implications. CGT will be assessed on any subsequent growth, when he subsequently sells property. |
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