CGT/SDLT on gift of property

[Mike2009]

Couple of questions in relation to gifting a property.

My wife and I are thinking of gifting our share of a property to our children hopefully before the rise in CGT is introduced.

We know the gift/transfer will have to be at 'Market Value'.

The question I have is to what the 'Purchase price' of the property would be for the calculation of the gain.

The property was inherited from my father after he died. Originally in his will he left the house to myself (100%) but I did a Deed of Variation so the property went to myself (30%), my wife (30%) and my two children (20% each). My father died in 2003 and the Deed of Variation was completed in 2005.

Would the 'Purchase price' be either a) the IHT value when my father died or b) the market value when the Deed of Variation was completed?

I understand that as there is no mortgage on the property the gift would not attract SDLT. Is this correct?

Mike

[jeffrey]

There will be no SDLT to pay if the transaction is a true gift, i.e. it involves:
a. no purchase price payable by Transferees to Transferors; and
b. no responsibility for any mortgage debt carried-forward from Transferors to Transferees.

[Telometer]

Date of death gives value.

[Mike2009]

Thank you for your replies. Always appreciated.

Thought it would be the value from date of death. Will now work out what the CGT liabillity will be.

Mike