Capital Gains Tax (CGT) and gifting property
A Boring Money reader asked about the tax implications of transferring their property to their child as a gift.
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Capital Gains Tax (CGT) in the UK is charged on the profit (the ‘gain’) you make when selling or disposing of assets such as property (other than your main home), shares, or certain valuable items. You pay tax only on the gain, not the total sale price, and each individual has an annual CGT allowance (£3,000 for 2024/25). Since April 2024, gains on both property and shares are taxed at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. Certain reliefs, such as Private Residence Relief or Business Asset Disposal Relief, may reduce the tax you owe.
If you are unsure how this information applies to your situation, you should seek professional advice.
