• Siblings Jointly Own Leasehold Flat. What Taxes Incurred On Gifting One Share?

    By Guest on 04th Aug 2020


    Dear team, I have learning difficulties so sorry if anything is not clear. I am hoping that you can help me understand a big tax worry.

    My sister and I own a leasehold flat (joint owners, no mortgage). She wants to gift me her 50% share. She and her husband are pressing me to accept this decision very fast. They assure me that I would have to pay no tax on such a gift.

    But I was under the impression that any taxes are calculated on current market value, not final sale price, so even if no money changes hands I would still have tax to pay?
    Also I think there are many different kinds of related tax -- income tax, capital gains tax, stamp duty land tax, inheritance tax? With heavy penalties for non-payment.

    1. Do I need to pay taxes if my sister transfers (gifts) her 50% share of the flat (joint owners, leasehold, no mortgage) to me?
    2. What kind of taxes might I need to pay?

    I am very worried about this.

    Thank you in advance for any help.

  • 2 Answers

    By NotaryExpress on 05/08/2020

    There would be no Stamp Duty Land Tax (SDLT) due from you in the scenario you describe.

    I would advise you ask an accountant if there would be any Capital Gains Tax or other taxes.

    www.notaryexpress.co.uk

  • By NotaryExpress on 05/08/2020

    (I am assuming you are receiving the property as an individual and not in a company name)

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