How does Capital Gains Tax work with gifts?
When we think about gifting to loved ones, we all want to understand the tax implications so we can plan the future with confidence. Capital Gains Tax responsibilities are an important part of estate planning, but do you pay Capital Gains Tax on gifts, and if so, who pays?

Allowable losses for Capital Gains Tax
You can reduce your taxable gains if you report losses – called allowable losses – to HMRC. However, when gifting property to family you can’t deduct losses from the gift unless you offset a gain from the same person. This applies to gifts made to ‘connected people’, such as children and grandchildren, but also brothers, sisters, parents, grandparents, extended family members and business partners.
How to report your Capital Gains Tax
You can report and pay any Capital Gains Tax due by visiting GOV.UK. Alternatively, you can request a paper form from HMRC. If you’ve sold a residential property, you will need to report and pay any CGT owed to HMRC within 60 days of the sale.