Could a person sell their house to their kid for 1 pound (Good

>>3391678
Law student here.

You can absolutely sell your house to your kid for 1 pound.

>>3391705
Well it gets a little complicated if the kid is under 18. Then consider putting the house under trust instead

>>3391705
why don't people do it then

>>3391678
Because you are selling below market place it will be deemed a donation. Your parents will be taxed very heavily on this. Rather get them to sell it to you at just lower than market value (try not get any CGT implications for your parents) and then loan the money from them (in theory, there is no transfer of money but for this transaction there is) and use the loan amount to purchase. pro tip. Dont ever pay of the loan.

>>3391721
They do.

>>3391678
>>3391705
If this happened in burrgerland, The kid would have to pay taxes on a 200k gain, or whatever the actual value of the house is probably.
>How would they argue against your sincerely held belief?
maybe because the materials the house is made of are worth a lot more than 1 GBP

Or, I'm not sure if your government is stupid or something but, ghosts aren't real

>>3391726
this is all theoretical, I wouldn't dodge tax because I'm a good boy. But who decides the market value?

>>3391721
The difference between the house's appraised value and the 1 pound you sold it for becomes a gift for tax purposes.

At least, that's how it works in the U.S.

>>3391678
it depends from. country to country

where i live, its illegal to sell assets drastically below their average market price.

>>3391736
Do you have property tax in good boy land? The local government assesses the value of your land for property tax basis in burger land

>>3391726
sorry on a phone, dont pay off the loan. Also different countries have donation tax exemptions (per year) to a certain value. see what it is in the UK and then if your house is valued less you could transfer it as a donation. I highly doubt it though as property value is normally high and government want that sweet tax money.

>>3391736
The appraiser that works for city hall.

>>3391736
This is perfectly legal. there are a number of ways market value is calculated. you pay rates which are based on the value of the property. you also have other property sold in the area which can be used to estimate and finally a professional can come in and value the property. The government will obviously see a sale of property for one pound as highly irregular ( they would definitely pick this up in the transfer duty calculations and when you register the sale.)

>>3391771
the question is, how far could you get with your assertion that the house is 'cursed'? At what point do they say 'if you don't shut the fuck up about your cursed house, you're going to jail'

>>3391793
You would really be trying your luck. especially the ghost thing. You could maybe have a case for water damage or something else but due to the valuation methods i mentioned before, they would have an idea of what the house is worth and you would end up getting in trouble.

>>3391793
You can assert that it's cursed all you like and they won't care. You'll go to jail eventually if you fail to pay your taxes on the value that the government determined the property to be.

>>3391678
>How would they argue against your sincerely held belief?
By believing their own valuer not you.

Tax man gets his dues, anon.

The best bet is getting a friendly valuer to undervalue it so you pay less. However, this can bite your kid in the ass in the future if they ever decide to sell since they'll pay CGT from that undervalued point. So you've just delayed paying the CGT.

There were some loopholes to do with farm property and it being classed as a business if I recall

>>3391678
In the UK you can gift the house to your kid for free, but if you die within 7 years they've got to pay inheritance tax on the market value of the house.