Question:
I own a half share in a property which I don't live in. I have my own property in another part of the country. Can I gift my half share without financial implications? For example, can I gift it to a charity? I would like to ‘get rid’ of my half share for various family reasons, so just need to know how I can do this without financial implications.
Arthur Weller replies:
If you gift your half share in the property, for capital gains tax purposes you are deemed to have disposed of it at its present market value, even though when you gift you receive no money. www.hmrc.gov.uk/manuals/cgmanual/CG14530.htm. Therefore if it is worth more now than its value when you acquired it, you have made a capital gain. However when you gift to a charity, it is deemed to be 'no gain no loss' i.e. you are deemed not to have made any capital gain. www.hmrc.gov.uk/manuals/cgmanual/CG66621.htm.
