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transfer of house

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we own our current house and are considering buying a second house which we will move into and then rent out our current house.

it would be beneficial if our current house was in my name only as i don't work.

whats the quickest / cheapest way to do this
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Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    if by 'own' you mean mortgage free, then you can do it yourself by contacting the land registry
    otherwise you need a solicitor
  • ian103
    ian103 Posts: 883 Forumite
    yes mortgage free, do you have to pay fees to the land registry?
  • nomunnofun
    nomunnofun Posts: 841 Forumite
    That is all very well. However, if you let out your current home for, say, ten years and then decide that you wish to sell there could well be Capital Gains tax to pay and:

    1) you will have only one capital gains exemption, not two.
    2) Any taxable gain will be at your rates at the time of sale - you could be working by then?
  • holly_hobby
    holly_hobby Posts: 5,363 Forumite
    1,000 Posts Combo Breaker
    If you are looking to transfer the equity into your sole name for tax purposes on rental income, given you don't work - the best way to do this if you are married/civil partners, is by changing the deeds onto a Tenants In Common arrangement. Whereby the legal and beneficial ownership (ie division of rental income) may be unequally apportioned, with the election nominated to HMRC via Form 17.

    In this way you can say hold 99/1 to the lower or non-taxpayer - but permits you to both have legal ownership, and retain both your CGT allowances for any gain on disposal, in addition to further reliefs, such as primary residence relief, lettings allowance and any carry forward of prev CGT losses (already nominated to HMRC) - which you are looking at pretty hefty gain before you are liable to CGT. As a point to note, any unused annual CGT relief is not trasnferrable between partners, nor can it be carried foward to the next financial yr.

    Can give a bit more meat on the bones if needed - but hope this helps in the meantime.

    Holly
  • nomunnofun
    nomunnofun Posts: 841 Forumite
    If you are looking to transfer the equity into your sole name for tax purposes on rental income, given you don't work - the best way to do this if you are married/civil partners, is by changing the deeds onto a Tenants In Common arrangement. Whereby the legal and beneficial ownership (ie division of rental income) may be unequally apportioned, with the election nominated to HMRC via Form 17.

    In this way you can say hold 99/1 to the lower or non-taxpayer - but permits you to both have legal ownership, and retain both your CGT allowances for any gain on disposal, in addition to further reliefs, such as primary residence relief, lettings allowance and any carry forward of prev CGT losses (already nominated to HMRC) - which you are looking at pretty hefty gain before you are liable to CGT. As a point to note, any unused annual CGT relief is not trasnferrable between partners, nor can it be carried foward to the next financial yr.

    Can give a bit more meat on the bones if needed - but hope this helps in the meantime.

    Holly

    All with the assumption that the op is married (or in a civil partnership) with the co-owner.
  • holly_hobby
    holly_hobby Posts: 5,363 Forumite
    1,000 Posts Combo Breaker
    edited 1 January 2013 at 8:47PM
    nomunnofun wrote: »
    All with the assumption that the op is married (or in a civil partnership) with the co-owner.

    I actually did say "if" married and therefore contrary to your comment, I obv didn't assume or mis-read anything.
    the best way to do this if you are married/civil partners, is by changing the deeds onto a Tenants In Common arrangement. Whereby the legal and beneficial ownership (ie division of rental income) may be unequally apportioned, with the election nominated to HMRC via Form 17.

    As compared to assuming they are single ... which does appears to be the case from your own post.

    And I provided info and guidance re TIC/Form 17, that others had failed to raise.

    I thought it was both helpful and supplemented the prev comments - obv you didn't think this to be the case, but hopefully the OP and others will think otherwise.
    nomunnofun wrote: »
    2) Any taxable gain will be at your rates at the time of sale - you could be working by then?

    Working or not has no bearing on whether CGT is chargeable or payable on a gain in excess of permitted reliefs and allowances. Indeed, in this case where there is a chargeable event (with liabiilty after application of all reliefs and allowances) the residual amount is charged at 18% for non or basic rate taxpayers and 28% for higher rate taxpayers (which is obviously where the only relevance and influence employment status/earned income arises i.e the individuals personal tax status will dictate what rate of CGT is chargeable on gains (net of allowances/reliefs/losses) - 18% or 28%, not whether it is chargeable on a net gain at all - which I feel OP is important to make clear.

    Hope this helps

    Holly
  • ian103
    ian103 Posts: 883 Forumite
    yes we are married, i will check tomorrow if the deeds are already 'tenants in common' as TIC/Form 17 seems to solve our problem. OH works full time and doesn't want any further income until she reduces her hours, where as I am currently unemployed and could use the rental income as my income, even if I got a job it is likely that I would only just get into the 40% tax bracket at best.
  • holly_hobby
    holly_hobby Posts: 5,363 Forumite
    1,000 Posts Combo Breaker
    ian103 wrote: »
    yes we are married

    T'was a useful post afterall then ....

    Here's a link to form 17 for you to print off, complete and submit to HMRC.

    http://www.hmrc.gov.uk/forms/form17.pdf


    Hope this helps

    Holly
  • nomunnofun
    nomunnofun Posts: 841 Forumite
    edited 2 January 2013 at 6:21PM
    I actually did say "if" married and therefore contrary to your comment, I obv didn't assume or mis-read anything.

    I believe that I was merely emphasising that part of your post-nothing more! No hint anywhere that you were misleading!



    Working or not has no bearing on whether CGT is chargeable orpayable on a gain in excess of permitted reliefs and allowances.


    Agreed - did I say that it did?- my point being that in the case where the op would be working, different cgt rates could apply.

    Very touchy ripostes if I may say? Was my line and a half really that offensive?
  • holly_hobby
    holly_hobby Posts: 5,363 Forumite
    1,000 Posts Combo Breaker
    edited 2 January 2013 at 6:32PM
    Not touchy at all, but found your original post referring to the info I had provided unnecessary and hugely inaccurate ....

    NB - Diff rates would only apply if they were a higher rate taxpayer (28%) once back in employment and not a non/basic tax payer (18%).


    H
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