Is Capital Gains Tax Paid When Gifting Property

Published / Last Updated on 17/06/2019

Just because you are gifting a property rather than selling it does not mean that capital gains tax does not apply.  Capital gains tax may be payable when you have sold or gifted assets for money or money’s worth.

Selling your main residential home does not usually create a capital gains tax liability under Private Residence Relief rules unless you have let/rented out all or part of your home at some point.

The same therefore applies for gifting your main residential home.

If you are selling any additional residential property/2nd home/holiday let/buy to let then capital gains tax may be payable.  The same therefore applies to gifting your additional property but other relief such as Lettings Relief may help.

In summary, capital gains tax may be payable when gifting investment property or when gifting your main home if you have ever let/rented it out although both Final Period Exemption on Principle Private Residence relief and Lettings relief may help reduce tax.

Contact us for advice.

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