How to add a new person to my house deed?

sarbaloosa

Hi guys,

I was wondering if you know how I could add a family member to a property that has solely my name on it. The mortgage is fully paid off.

1. Can this be done easily with a form?
2. How much will this cost?
3. Do I need a solicitor for this?

Thanks,

xylophone

https://www.gov.uk/government/organisations/land-registry will assist.

In effect you are making a gift - tax implications?

Contact a few local solicitors and ask about fees?

sarbaloosa

xylophone wrote: »

https://www.gov.uk/government/organisations/land-registry will assist.

In effect you are making a gift - tax implications?

Contact a few local solicitors and ask about fees?

Thanks Xylophone. I have clicked on the link but am unsure which section I need.

Can you elaborate on tax implications?

Thanks

booksurr

CGT
if you are married to the other person there are no tax implications

if you are not married AND you do yourself do not currently live in the property as your main home then you would be liable for Capital Gains Tax

IHT
the inheritance tax implications depend on a) if your estate is above the IHT threshold to start with, b) how you both own it, c) what your will says and d) whether you continue to live in it

sarbaloosa

From what I have read I believe the following is all I need to do:

Call the Land Registry Helpline and submit Forms TR1, AP1 and ID 1. When these were processed my son would be added to the Registry for a fee of about £70.

I am unaware of any other fees involved at this stage as the house has no mortgage. If there are any other fees I need to be consider, please let me know. Thank you.

sarbaloosa

booksurr wrote: »

CGT
if you are married to the other person there are no tax implications

if you are not married AND you do yourself do not currently live in the property as your main home then you would be liable for Capital Gains Tax

IHT
the inheritance tax implications depend on a) if your estate is above the IHT threshold to start with, b) how you both own it, c) what your will says and d) whether you continue to live in it

Hi,

The house I would like to change the deeds on is not MY main home however, it is HIS main residence and I would like to add him to the paperwork/registry.

What fees would I need be subject to pay?

sarbaloosa

booksurr wrote: »

CGT
if you are married to the other person there are no tax implications

if you are not married AND you do yourself do not currently live in the property as your main home then you would be liable for Capital Gains Tax

IHT
the inheritance tax implications depend on a) if your estate is above the IHT threshold to start with, b) how you both own it, c) what your will says and d) whether you continue to live in it

With respect to IHT -

- What is the IHT threshold?
- Currently I am the sole owner and it is only my names on the deeds.
- I do not have a will
- I plan on living in my current residence as my main home and not live at the house in question.

RAS

As you are not living in the property there may well be CGT implications of transferring ownership now

IHT limit is £325,000

sarbaloosa

RAS wrote: »

As you are not living in the property there may well be CGT implications of transferring ownership now

IHT limit is £325,000

Thanks for this.

The house is worth about £180K.

So I would be paying CGT or my son? How much would this roughly be?

BobQ

You pay CGT if you sell the property. It will be taxed based on the difference between market price when you sell and the market price when you bought it (or ceased to reside there) less a CGT tax free allowance of about £11K. The tax depends on your circumstances. Have a look on HMRC website. Its either 18% or 28% or a combination of the two based on your income band.

When you part transfer ownership, your CG in the future will be less and your son will not have to pay it.

BobQ

sarbaloosa wrote: »

With respect to IHT -

- What is the IHT threshold?
- Currently I am the sole owner and it is only my names on the deeds.
- I do not have a will
- I plan on living in my current residence as my main home and not live at the house in question.

IHT is charged when you die and is paid by your personal representatives on your total estate (ie all houses, assets, savings) above the threshold at a rate of 40% (although there are ways of reducing this in some cases).

Not having a Will is irrelevant (but you should probably have one).