selling a house for less than its market value

ma | 17:51 Wed 01st Sep 2004 | Business & Finance

3 Answers

I want to sell one of my houses that I don't live in to someone for the mortgage value which is less than half its market value. what future tax implications might arise out of this? any meaningful thoughts muchly appreciated.

Debt

IKEA

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kags

are you in the UK? Is the person who will buy the house a relative or business associate?

Question Author

yes I'm in the UK and the person who'll buy it is a sibling.

rinkytink

Because you don't live in the house it will be subject to capital gains tax. This will be calculated on the market value (worth) of the house and not what you actually get for it. Here is a useful introduction to capital gains tax (see example two):

CLICK HERE

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