Tax on gifting a property

A question about : Tax on gifting a property

Would be grateful if anyone can help on this.

I would like to gift a property to a relative and would like to know if there is any CGT to pay. I own half the property would like to give my half away for free to the relative that owns the other half. I read on the HRMC site that CGT is payable even if you give it away for free but I not sure because its not too clear. Have owned the property for 10 years and lived in it for 8 years.

Best answers:

• Yes you do have a liability for CGT, BUT , it depends on the values as to whether you actually have anything to pay
  The calculation must be done in months not years but for the sake of illustration…
  You have owned it for 10 years and lived in it (as your main/only home?) for 8 years meaning you also get exemption for the final 18 months of ownership. Therefore out of 10 years you get 9.5 years exemption
  Your calculation is:
  1) work out your share of the gain: current market value (read the rules about “connected persons”) minus original purchase cost – any buying and selling costs (eg. EA and legal fees) x your share 50% = your gross gain (A)
  2) multiply your gross gain A by exempt period 9.5/10 = exempt amount B
  3) A – B minus your personal allowance (Ј11,000) = net taxable gain C
  If C is >0 you have tax to pay
• As its only around 6moths I may as well just say I've lived there the whole time.
• You are making a gift for IHT purposes - you should get the house valued and record the value of your share in a document to be kept with your will to assist your executors.
  You are no longer living in the house?
  https://www.gov.uk/inheritance-tax/gifts
• given you have 9.5 of 10 years exemption, so unless the gain is more than
  11,000 x 20 = 220,000 then there would be no cgt (even without being untruthful)
• I have worked it out and the is no tax no pay because it goes on to minus. Do I need to do anything else? If there is no tax to pay do you still have to fill out the tax forms? Thank you all for your advice it helped a lot.
• If it's not currently your main residence then any sale which gives proceeds of more than 4 x the annual CGT allowance, Ј44k at todays allowance, needs to be declared to HMRC, even if no gain is made.