News | June 3, 2020

The Gift of Good Timing

As lockdown restrictions begins to ease, it is still not certain what the  residential property market will look like. Depending on how quickly the economy can reopen, it is expected that property prices will continue to decrease for the time being before we see any signs of recovery. However this current status could provide opportunities for property investors. The falling house prices could provide opportunities such as impetus for the restructuring of any remaining property ‘envelopes’ and it may also be a time to engage in lifetime giving of (directly-held or indirect) UK residential property interests to family members. There are various Covid-related tax considerations that investors should bear in mind when they are looking to implement gift planning. This includes the practical challenges of valuing property, the implications of Non-Resident Capital Gains Tax (NRCGT) for non-UK residents on gifts and  the issues when a gift of UK residential property to a connected person results in a deemed NRCGT loss. This article discusses all of these issues in further detail showing how now could be a good time for estate planning with residential property interests.

The article was originally published by eprivateclient on 20/05/2020 please click here to read the full article.