Morning all,

I am considering buying my parents property at below market price in order to take over the mortgage, so that I can put it on a longer term deal and lower repayments.

Could anyone advise what the tax implications are of transferring property?

Thanks
Michael

Hi Michael,

If a property sale takes place "between two connected persons" there is a form that needs to be completed and sent in to HMRC. This is a form giving details of thr property, price it was sold for and if I remember correctly there is something on it regarding valuations whether this be an independent one from a surveyor or one can be carried out by the HMRC valuations team.

Details are on the HMRC site and I have a link for the forms but could not access the site for some reason today

http://www.hmrc.gov.uk/cgt/forms.htm

There should be some notes available to complete the form too.

Just got access to the form, a CG34, link below

http://www.hmrc.gov.uk/forms/cg34.pdf

To get fuller information on the tax implications, if any, it may be wise to register at taxationweb.co.uk which has sections dealing specifically with CGT and tax advisers or tax accountants will give initial advice free of charge via the forum. Just give them full deatils of whether you or your parents intend to stay in the house and what you intend to do with the house at a later date as there are other reliefs that could come into the equation to reduce any CGT that could possibly be charged.