GIFT transaction and capital gains tax applicable

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This discussion clarifies that gifting property, such as a cinema theatre, to a sister's son or brother's son is permissible in the UK, provided the gift deeds are properly registered and stamp duty is paid. Importantly, capital gains tax is not applicable to these specific gift transactions. However, income tax may apply if the value of the gift exceeds £50,000.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

05 October 2022 Sir,
A it person own property (cinema theatre) gift to sister's son after another date sister's own property (cinema theatre) gift to brothers son received.
Question:
Above mentioned two gift transaction allowed and capital gains tax applicable.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

06 October 2022 Yes, both are allowed provided both the Gift deeds are registered with appropriate stamp duty paid.
No capital gains tax applicable, as per sec. 56(2)(x) sub sec. 4 of the act. i.e.

For the purpose of this section, “relative” means:

In case of an individual-

1. Spouse of an individual
2. Brother or sister of the individual
3. Brother or sister of the spouse of the individual
4. Brother or sister of either of the parents of the individual ................

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