If Someone Gifts You A House Are You Liable To Pay Tax On It?

[dave50]

For example if someone was given a house worth say £200000, would the recipient have to pay tax on the gift and at what rate?

[davebro]

No - however the giver may be liable for Capital Gains Tax in some circumstances. And there may be Inheritance Tax if the giver dies within 7 years.

[ubasses]

One thing to watch, the Government are considering a 10% tax payable on all gifts over £30,000.

[ToraToraTora]

No, there is no tax on gifts but as dave says, the giver's estate could be liable for IHT if they should die within 7 years.

[AuntPollyGrey]

It depends on who that 'someone' is.
Link explains things in easy-to-understand format:

https://www.litrg.org.uk/tax-guides/savers-property-owners-and-other-tax-issues/capital-gains-tax/capital-gains-tax-gifts

[Peter Pedant]

nope - as in no tax ( now )
make sure the gift is documented and the land registry changed

The giver may be due some tax - such as capital gains
AND if the giver dies within 7 y the gift is included in HIS IHT calculation but I understand that the tax man may come after you for a ... little tickle.

[davebro]

" but I understand that the tax man may come after you for a ... little tickle."

Not sure - but I think it would be the responsibility of the executors.

[Peter Pedant]

I put in rather a nice 'may'

so that - - - if the giver has an estate of £1.2 m
and has given away £1.1 m three months before he dies,
then I think the tax man has powers to go after the holders of the £1.1m - er wherever they be ( as a tax man smelling money might say)

[Canary42]

As an Executor I came across this situation where it was over 7 years but the Gov Probate Instructions intimated that IHT tax could still be due under some circumstances.

I rang the Probate Service Help Line and the result was hilarious - they were baffled by my particular circumstances and I was passed from pillar to post until eventually a rather unconvinced-sounding guy exonerated me in respect of the liability. Not having it in writing, I approached the Probate Interview with trepidation - but it all went off very smoothly and surprisingly pleasantly.

[SIRandyraven]

My grandmother signed over her house to me (worth £400,000 at the time) and died some 8 years later. There were no tax implications at the time.
When we later sold the house at a later date , we had to declare any capital gains for tax.

[Peter Pedant]

yeah watch out ( not here)
for serial giving

30k and then 40k four years later counts as 70k and the clock resets to zero. Not sure how many times they can do this

[Peter Pedant]

randy raven - granny has to move out under current rules
( retention of benefit rules) and nary spend another night in the house ( clock restarts)