Gifting a house to my son

spnoe

I am thinking of giving a house that my wife and I own to my son. He has rented the property from us with his partner and children. He is now unemployed and having difficulty getting work; he is in his late thirties. We now live in Spain.
I need to know what the implications would be in respect to Tax etc for both my son and my wife and I. The House is probably worth 200,000.

Help is most gratefully received.:(

xylophone

http://www.hmrc.gov.uk/cto/customerguide/page20.htm
http://www.hmrc.gov.uk/cnr/faqs_capgains.htm
Anything here?

missile

Be careful. Why not just let him continue to live there for a peppercorn rent?

Mrs_Money

There could be problems ahead:
if you need care in the future, the Local Authority (if you return to the UK that is) can regard such a gift as deliberate deprivation of assets and could treat you (financially) as if you still had the house- don't know what may happen after that...
If inheritance tax may be an issue in the future then seven years would have to elapse after the gift before it was disregarded for IHT...
Can you change the deeds of the property to tenants in Common? This would see you, your son and your spouse as all owners officially - it can be a way forward, with the help of a solicitor of course!
Just some things to think about...

spnoe

Thanks to all that have replied to my thread. You have been most helpful.

Steve

getmore4less

Don't forget to check the tax situation in spain as well.

Savvy_Sue

spnoe wrote: »

I am thinking of giving a house that my wife and I own to my son. He has rented the property from us with his partner and children. He is now unemployed and having difficulty getting work; he is in his late thirties. We now live in Spain.
I need to know what the implications would be in respect to Tax etc for both my son and my wife and I. The House is probably worth 200,000.

Help is most gratefully received.:(

I'd respectfully suggest that you need to get proper advice, ie the kind you can rely on because you pay for it. There's a lot involved in this, and on a forum we can only scrape the surface - which we've started to do ... but as you're living in Spain - as residents? properly registered etc? - it's even more complicated, so you probably need both Spanish and English tax and inheritance and financial advice.

missile wrote: »

Be careful. Why not just let him continue to live there for a peppercorn rent?

Even here there could be tax implications: HMRC are, I believe, allowed to tax you as if you'd charged a proper rent, and it's vital to make sure of the Spanish situation (although you shouldn't have to pay tax on the rent in both countries, IYSWIM).

missile

You might get some more advice on one of the expat forums e.g. http://britishexpats.com/forum/forumdisplay.php?f=75