Gifting bullion, who pays CGT?

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(Newbie)Newbie

29 May 2024

Hi,

My wife & I are saving money each pay to help our children with a future home deposit.

Rather than having an ever increasing amount of interest to add to our tax returns each year, I am considering instead purchasing precious metals with the money and gifting it to them 20 or so years down the line.

To be clear, all monies saved are in my wife & I’s names, not our children’s. For example, if we were able to purchase 15kg of silver and gift it to child #1 when he is ready to buy his first house, will either he or my wife & I be liable to pay CGT?

Thanks.

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Bruce4Tax

(Taxicorn)Taxicorn

29 May 2024

For example, if we were able to purchase 15kg of silver and gift it to child #1 when he is ready to buy his first house, will either he or my wife & I be liable to pay CGT?

Transfer to child is a CGT disposal deemed to be at market value, so CGT for you and your wife.
Sale by child is a CGT disposal, but cost base will be transfer value - see above.

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Most helpful reply

Bruce4Tax

(Taxicorn)Taxicorn

29 May 2024

For example, if we were able to purchase 15kg of silver and gift it to child #1 when he is ready to buy his first house, will either he or my wife & I be liable to pay CGT?

Transfer to child is a CGT disposal deemed to be at market value, so CGT for you and your wife.
Sale by child is a CGT disposal, but cost base will be transfer value - see above.

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