Transfer of title deeds to a sibling. Help!

Fire_Fox

the_stoat wrote: »

So, the reason I would want to move the property to my sisters name is that I live in London and trying to get on the housing ladder there. This is proving very difficult as I work in a not particularly well paid job in the public sector. My only option is through a shared ownership scheme, however the snag is that if my name is on the title deeds of another property I am ineligible for the scheme.

My sister has lived in property up until about a year ago, I have never lived in the property. The property has been rented out for the last year. There is no mortgage on the property, it was bought for £70,000 and we spent about £10,000 renovating it. I should say, we have tried to sell it but have never been able to shift it, even when it was on for 18 months.

So you are in a low paid job yet are going to give your sister £35K worth of house in order to get on a shared ownership scheme? :huh: Have you ever heard of 'deprivation of capital'? !!!!!! sell the house and you will have a substantial deposit, if it wouldn't shift you overpriced it. If you can't afford to live and buy in London, relocate rather than spend the next twenty years struggling.

silvercar

00ec25 wrote: »

becuase you have never lived there, and assuming that it has gained in value above the 70,000 you paid for it, when you transfer it to your sister this is classed as a "connected person"
Therefore CGT liability will become immediately due based on the full market value of the house at date of transfer - irrespective of the fact you are giving it away to her for nothing.
You will therefore have to pay CGT now - if any is due.

well "now" as include it in your tax return for the year in question and pay the tax be 31 January after the end of the tax year. For that reason you may want to delay the transfer until after 5 April, so it falls in the following tax year and you have another whole year to find the money.

You have a CGT allowance of £10,100 to put against any gain. CGT is charged at 18%. If you bought it for 70k and spent 10k rennovating and it is now worth 90-100, your gain is 10-20k. So you CGT liability will be 0-10k depending on its valuation (after your allowance), so the tax bill could be upto £1,800.