Q. Is tax payable if a buy-to-let property is gifted to our children?
A. Since you mentioned that this property is a buy-to-let, I assume it is not your main residence. Therefore, you will be subject to CGT on the difference between what you paid for it originally, and its market value on the date of the transfer (see HMRC’s Capital Gains Manual at CG14530). Since you mentioned you are gifting it, I assume they are not paying you anything (i.e., no consideration). If so, they will not have to pay any SDLT. However, if there is a mortgage on the property, and they take over responsibility for the mortgage, this is deemed consideration, and there will be an SDLT liability dependent on the amount of the mortgage transferred (see HMRC’s Stamp Duty Land Tax Manual at SDLTM00330A).
Q. In which tax year do I declare my dividend payments?
A. Interim dividends are usually taxed on the date they are placed at the disposal of the shareholder, which is usually the date of payment. Final dividends are taxed when they are ‘due and payable’. If the date of payment of the final dividend is specified in the minutes, it would not become due and payable until the payment date. See HMRC’s Self-Assessment Income Manual at SAIM5040.
Q. If I sell some retained land from a previous sale will I have to pay CGT?
A. See HMRC’s Capital Gains Manual at CG64377, which refers to the case Varty v Lynes; in that case, Mr Lynes disposed of a dwelling-house whilst retaining part of the garden, which he disposed of at a later date. The High Court held that no relief was due in respect of the later disposal because the principal private residence (PPR) relief conditions of TCGA 1992, s 222(1)(b) were to be applied at the date of disposal of the retained land, and at that date it was no longer land which Mr Lynes held with his residence as its garden or grounds. Therefore, to qualify for relief, land must be held together with the residence on the date of disposal. So, land which is disposed of separately before the disposal of the dwelling house may qualify for PPR relief if the other conditions are fulfilled. However, land which is disposed of separately after the disposal of the residence cannot qualify for relief. So, in your scenario, it appears that this sale is not eligible for PPR relief.