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Give away property

24

Comments

  • raoh
    raoh Posts: 18 Forumite
    paddedjohn wrote: »
    Sorry, what i meant was are you selling/giving away the property so you have no assets?

    I'm planning to buy another property later on. Would that be a problem?
  • thelem
    thelem Posts: 774 Forumite
    Part of the Furniture Combo Breaker
    raoh wrote: »
    I'm planning to buy another property later on. Would that be a problem?

    What people are trying to get at, is what's in it for you. I'm sure your girlfriend is great and everything, but why would you rather she owned your home than you did?
    Note: Unless otherwise stated, my property related posts refer to England & Wales. Please make sure you state if you are discussing Scotland or elsewhere as laws differ.
  • raoh
    raoh Posts: 18 Forumite
    I am actually selling the property to her so I can use the money to buy another one. It's just like a normal sell which I don't really mind to do. I'm just wondering if I have to go through everything or there is a easier and cheaper way to do e.g. just transfer the name.
  • noh
    noh Posts: 5,817 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 29 November 2012 at 12:12AM
    raoh wrote: »
    It's my girlfriend I'm selling the property to. I can do the normal selling to her. However, I'm just wondering if there is a better way to do it to save some money for both of us.

    It's either a gift or a sale.

    If you wish to avoid SDLT it must truly be a gift ie no consideration is paid and there must be no outstanding mortgage greater than the SDLT threshold.

    http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm#4


    Do you own the house outright and are you happy to give your GF £320000?
  • noh
    noh Posts: 5,817 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    raoh wrote: »
    I am actually selling the property to her so I can use the money to buy another one. It's just like a normal sell which I don't really mind to do. I'm just wondering if I have to go through everything or there is a easier and cheaper way to do e.g. just transfer the name.

    If it's a sale then it's not a gift.
    SDLT is due.
  • raoh
    raoh Posts: 18 Forumite
    In that case, can she give me the money to pay off the outstanding mortgage and then I gift her the property?
  • thelem
    thelem Posts: 774 Forumite
    Part of the Furniture Combo Breaker
    That would still count as a sale.

    What would the situation be if she 'bought in' to the property? i.e. paid the OP £160k in cash for 50%?
    Note: Unless otherwise stated, my property related posts refer to England & Wales. Please make sure you state if you are discussing Scotland or elsewhere as laws differ.
  • raoh
    raoh Posts: 18 Forumite
    thelem wrote: »
    That would still count as a sale.

    What would the situation be if she 'bought in' to the property? i.e. paid the OP £160k in cash for 50%?

    In that case, if I buy another property later on. When we sell the current property, do we have to pay the Capital Gains Tax since it will be my second home?
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    raoh wrote: »
    In that case, if I buy another property later on. When we sell the current property, do we have to pay the Capital Gains Tax since it will be my second home?
    no - provided you sell it within 36 months of buying the new home . the final 36 months of owoning a property are always exempt from CGT for precisely this reason to allow time to sell up whilst you buy the next one

    anymore one liner questions about SDLT evasion?
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    thelem wrote: »
    What would the situation be if she 'bought in' to the property? i.e. paid the OP £160k in cash for 50%?
    it depends on whether the OP ever subsequiently sells her amymore of the property. If he did then the sales (as you rightly say they are NOT gifts ) would be classed as linked transactions (google it) and SDLT would be due on the total value of the combined transactions - HMRC thought of that dodge eons ago
This discussion has been closed.
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