This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Marketing

A bit of data which remembers the affiliate who forwarded a user to our site and recognises orders from those who become customers through that affiliate.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Passing second home down the generations
Can I gift my second home to my daughter who will then transfer ownership in two years’ time to her daughter who will then be 18? 
 
Arthur Weller replies:  
You can certainly gift your second home to your daughter, who can transfer it to your granddaughter in two years’ time. However, since it is your second home, it may not be eligible to some/any principal private residence relief, and so there may be some/a lot of capital gains tax for you to pay. When your daughter transfers in two years’ time she will be in a similar situation, except that her base cost will be today's value (i.e. the market value of the property on the day it was gifted to her). Alternatively, you could gift the property to your granddaughter today. Although she is under 18, she can still be the beneficial owner of the property, but someone over 18 will have to be the legal owner. 

This question was first printed in Property Tax Insider in September 2019.

Tax Insider Lite

FREE tax strategies delivered to your inbox every month.

  • By clicking on the button below you agree to the terms & conditions and the privacy notice of the website.
  • Subscribe for FREE