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    • Home • Advice • Common questions

    Can I gift a business property without incurring CGT?

    03 December 2024

    Question by Jean

    Hi,

    I have a business property. I want to gift it to my daughter, will it still have a capital gains charge?

    Thanks,

    Jean

    Answered by Zoe Dagless

    Typically, you may not have to pay Capital Gains Tax immediately when gifting business property, as you might qualify for capital gains holdover relief. This means that if your daughter were to sell the business property, she would use your original purchase price of the property. Essentially, you are deferring the Capital Gains Tax.

    However, this carries a risk since future legislation could change. I recommend consulting a tax adviser who can specifically determine whether your business property qualifies for holdover relief, as there are some restrictions.

    Additionally, if there is a mortgage on the business property, you may have to pay stamp duty. There will also be legal costs involved in transferring the business property.


    Answered by

    Zoe Dagless

    Director & Financial Planner

    I am a Chartered and Certified Financial planner at Meliora Financial planning. Prior to setting up my own business, I was at Vanguard and then spent most of my career at an independent financial planning firm specialising in enterprising women and their families. My focus is on the technical aspects of financial planning, particularly the complexities around pensions.

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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.