House transfer

samsmoney

My parent own a property worth £400,000.

On gifting the property to me, am I or her liable for SDLT?

Also, is there any way of mitigating against the 7 year rule?

thanks

MrandMrsB

From memory Mr B is pretty sure SDLT is not payable if money has not changed hands, but if the value has increased your parents will need to pay CGT! Sorry. If your parents need to go into a care home / claim benefit / go bankrupt you might have to recompense them. There are other considerations too. You need proper legal advice.

Why are they thinking of transferring it into your name?

Richard_Webster

Parents aren't staying in the house are they, without paying a market rent?

If they are then the 7 years does not start to run and the asset would be included in the estate for IHt purposes when parents die.

MrandMrsB

Mr B says that he misheard and thought I was referring to "a house" that your parents own rather than their residence.....he would need more details....there are other ways in the which the government can catch them and you out.....he did tell me but I have already forgotten the names of the taxes! You need specialist legal advice from a solicitor who is highly regarded......too many make a hash of such things, also the government has a habit of closing loopholes, in fact they almost certainly will close any loophole that you find.

I remember people transferring property to their children and they came unstuck when the government changed the rules! To get out of the mess they needed to pay some form of tax right away or pay rent on the property that was subject to income tax......can't remember the detail.....fortunately Mr B thought ahead and advised his clients against it!