Can I gift a business property without incurring CGT?

3 Dec, 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 who is passionate about financial planning!
I have worked at various firms over the years ranging from an independent financial planning firm specialising in women and then a large fund house building out a financial planning service available to a wide range of investors.
I've set up Meliora Financial planning to genuinely help and get people to achieve their financial goals (without any jargon!), and ensure that they happen - creating that lasting trusted relationship for years to come.

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