Gifting Property to Children

Hi, Can my Father gift his mortgage free home to his 4 children equally. He will still live in the house, approx value of house is 320K?

Hi Merlin2465 George,
Yes but it will still be part of his estate for Inheritance tax as he is still living in it.
Thank you.

Hi my mum gifted myself and my sister her property about 6.5 years ago she has rent for life in the property she currently has dementia and might have to go into care at some point in the future would the council take the property to pay for her care it’s value is approximately £80000 we love in Scotland the property was gifted when she was just ready to retire and had no signs of dementia which only started around 2 years ago

Hi, not a HMRC Admin but I can explain HMRC's responsibility (as a department) is tax so they can only answer tax questions. What you're asking about is deprivation of assets. It can apply to DWP administered benefits too but in this case you're talking about deprivation of assets in relation to care funding provided by your local government (council). Each council may have a different policy for enforcing deprivation of assets so you may find your council are the best ones to ask.

I'd like to gift a second property to my two children. What is the process?

Hi,
Please note, HMRC does not give advice on how to pass on your own property, money, and possessions.
There are several routes you can go down if you want to transfer property to family members.
The types of transfers you can do, property transfer costs, and the different taxes you might have to pay all depend on a variety of things.
We would recommend you take legal advice to decide on the best option. 
Thank you.

Hello If my mum gifts her property to me and still lives in it should she pay me rent. If not is it still classed as her house. If she does pay rent does it need to be market value rent. Thanks

Hi,
Yes, you will then need to declare the rental income.
How Inheritance Tax works: thresholds, rules and allowances
Thank you.

I am hoping you can advise me. My father lives in his house with his two children. The property is mortgage free. As it is his primary residence, i assume he can gift part of the house to his children with no capital gains to pay? Then as its also the two childrens primary residence, they could each receive £250,000 worth of the property without stamp duty to pay? Is my understanding correct? My father will want to remain living in the house. I note the following... 'If you want to continue living in your property after giving it away, you’ll need to: pay rent to the new owner at the going rate (for similar local rental properties) pay your share of the bills live there for at least 7 years You do not have to pay rent to the new owners if both the following apply: you only give away part of your property the new owners also live at the property'. In order to benefit from this and my father not have to pay rent, what percentage of the property can or cannot be given away. Thanks.

Hi,
You will need to contact our Inheritance Tax and Stamp Duty team for advice.
Inheritance Tax: general enquiries
Stamp Duty Land Tax
Thank you.

Hi, My parents are considering gifting 85% of their property to me and my brother. It is their main property, they plan to continue to live in it and pay me and my brother 85% of the market rent under a formal rental agreement. My brother and I will not live in the property. Under these conditions, would HMRC consider it a gift without reservation and therefore a potentially exempt transfer?

Hi,
Please contact the Inheritance Tax team for advice.
Inheritance Tax: general enquiries
Thank you.

Hi I lived in a property for 20 years with my first husband. The house was solely in his name. When we divorced the house transferred to me. I have since remarried and I no longer live there. I would like to transfer the property to my son. Will I be liable for capital gains tax? Thank you.

Hi ,
 

Possibly, yes.  Private residence relief ( HS283 Private Residence Relief (2024  )   will cover the period that the property was your main residence, so a gain may arise from the period it was not your main residence.  You will need to work this out .  There is a calculator at : Capital Gains Tax  .  As you are gifting the property to your son, you will need to obtain the market value of the property at the time of gifting, to work out any gain / loss.  If there is a gain, you have 60 days from the completion date to report and pay the tax due.  There are links at the end of the calculator to allow you to do all of this online . Thank you .