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gifting of property
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my parents are gifting a second property of theirs ,which is currently being rented, to myself and 2 siblings. Does anyone know of the financial implications for us, either to continue to rent it out or to sell the property? any advice would be helpful. Thankyou.
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Renting it out - you will be liable for income tax on the profits from the rent. When you eventually sell it you could be liable for capital gains tax.
Selling it - if it rises a lot in value between the time you are given it and the time you sell it you could be liable for capital gains tax
Your parents - may be liable for capital gains tax when they give it to you. Should they die within 7 years there may be inheritance tax to pay.
Where I say 'may' or 'could' it will depend on the figures whether there is any actual tax to pay
Selling it - if it rises a lot in value between the time you are given it and the time you sell it you could be liable for capital gains tax
Your parents - may be liable for capital gains tax when they give it to you. Should they die within 7 years there may be inheritance tax to pay.
Where I say 'may' or 'could' it will depend on the figures whether there is any actual tax to pay
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