Transfer of Equity

theflooze

My dad wants to do a transfer of equity in his house to myself and my two siblings. Does he have to remain on the title deeds in order to stay resident in the house? There is no mortgage owing on the house. Also would there be any stamp duty or tax implications? Current value of the house is around £200K.

BoGoF

Oh dear, this question again. Google 'Deprivation of assets' and get good legal advice before even contemplating this

ceeforcat

The answer to the second sentence is clearly 'No' - if the house is transferred to you, who lives in it is up to you?

However, in addition to what BoGoF says:

1) If your father continues to live in it and does not pay a market rent (upon which you would pay tax) it will be deemed not be transferred to you for Inheritance Tax purposes and remain in his estate.

2) Because it is not your main residence you will ultimately pay Capital gains tax when you sell it.

You would be changing an asset from one that is free of tax implications to one potentially chargeable to two.

John_Pierpoint

Too little information.
Too many assumptions.
Inheritance Tax (IHT) starts at £325K (£650 for a married couple).
The other issue is dodging care home fees [I think the majority of the very old would prefer to live in their own home].
It is possible to transfer an interest in "the family home" to the next generation provided the parents and the children both occupy the property as their principle private residence (PPR) and to dodge care home fees as long as its done in good time (ideally late 50's early 60's ).