Does gifting a property – either a transfer or at a reduced price – attract tax? | Money | guardian.co.uk

Does gifting a property – either a transfer or at a reduced price – attract tax? | Money | guardian.co.uk

Q My sister, who lives abroad, bought a UK property in 2004 which has since been let out, and I have been the letting agent. The average annual rent she has been getting is about £6,000-£7,000. This is her only UK property and she paid £47,000 for it – it is now valued at about £85,000. She is now thinking about giving it to me as a gift.

I already own one house with no mortgage. What are the tax positions if she transfers it to me, or if she sells it to me at a reduced price (eg £20,000)? If she were to sell the house and give me all the money, how much capital gains tax must she pay, and how much tax must I pay on this lump sum gift? PB

A ...