I am considering buying a rental property for my daughter to live in as she is separating from her husband and can’t afford a mortgage. Can I pass this on to her or sell it at a reduced rate in the future? Would this be a prudent way to help her in the long run?
Arthur Weller replies:
You are at liberty to pass this on to your daughter or sell it to her for any amount you want, including a reduced rate. However, for capital gains tax (CGT) purposes, you will be deemed to have transferred it to her at the market value of the property at the date of the transfer. So, if you transfer to her before it goes up in value, there will be no CGT implications. Otherwise, there will be.