doobrey
02-08-2009, 08:03 AM
The following has ocurred to me and I am interested to know whether it would work. (I am not particularly intending to do it.)
Say somebody is not liable to Capital Gains Tax but will be in future, for instance due to repatriation. If they have made a capital gain on a property, could they transfer title to someone else - say, a family member - and then transfer it back again in order to reset the gain to zero? This could involve payment of market value although I have got a feeling that the law involving transfer of property between family members is automatically treated as at market value for tax purposes. In this case it could be sold and bought back for a pound, and then treated as purchased at current market value for future CGT calculation.
Say somebody is not liable to Capital Gains Tax but will be in future, for instance due to repatriation. If they have made a capital gain on a property, could they transfer title to someone else - say, a family member - and then transfer it back again in order to reset the gain to zero? This could involve payment of market value although I have got a feeling that the law involving transfer of property between family members is automatically treated as at market value for tax purposes. In this case it could be sold and bought back for a pound, and then treated as purchased at current market value for future CGT calculation.