We have a few BTL properties but not enough to qualify for being a business/LTD. A large property that divided in to two flats - (duplex and single bed) is owned jointly with spouse and have never used as main dwelling as an adult but inherited when parents passed some 30years ago. Value in excess of £300,000. Daughter living in duplex.
We are considering gifting the property to her, hoping to live next 7 seven years :¬) as we are both in good health.
Do we declare the gift in our accounts or just keep details of transfer with our will for future executors?
It’s one of those things that’s “hard to get right without a professional involved.”
You need to consider not only IHT (paid by the estate after you die), but CGT (paid after the tax year in which you make the gift as if you’d sold at a Fair Market Value), but also the possibility of SDLT (stamp duty) paid at the time of transfer.
You might be lucky and have to pay no SDLT. If you’ve ever remortgaged, it gets messy.
I would definitely recommend speaking to an accountant about your specific situation. This is not the place to get these sort of answers as inheritance and tax planning is quite complex and depends on the individual circumstances.