What are the tax implications if I were to gift a buy-to-let property (located in Southampton) to my adult children? I would not benefit from any income from the property after the transfer. Would capital gains tax (CGT) and stamp duty land tax (SDLT) be payable on transfer? 

Arthur Weller replies  

Since you mentioned that this property is a buy-to-let, I assume it is not your main residence. Therefore, you will be subject to CGT on the difference between what you paid for it originally, and its market value on the date of the transfer (see HMRC’s Capital Gains Manual at CG14530). Since you mentioned you are gifting it, I assume they are not paying you anything (i.e., no consideration). If so, they will not have to pay any SDLT. However, if there is a mortgage on the property, and they take over responsibility for the mortgage, this is deemed consideration, and there will be an SDLT liability dependent on the amount of the mortgage transferred (see HMRC’s Stamp Duty Land Tax Manual at SDLTM00330A).