How to add a new person to my house deed?

xylophone

You inherited the property under the terms of your mother's will.


See http://www.hmrc.gov.uk/cgt/intro/gifts-inherit-divorce.htm

booksurr

BobQ wrote: »

Surely the share of any joint ownership as tenants in common is defined in the land registry entry or in a Deed of Transfer when the change happens. You do not need a Will to own property as tenants in common, however desirable it is for people to have a Will.

agreed, the existence of a will has nothing to do with ownership records however since the point of the exercise is to change the ownership arrangement then a will, if in existence may need to be amended or made if not. I was merely covering an area often overlooked when property changes hands

booksurr

sarbaloosa wrote: »

The property I wish include my son on was left by my late mother. I currently am not working and have no taxable income.

If I am following your comment correctly, the only thing I will have to pay for is CGT as I will have triggered a 'CGT event' by wanting to include my son on the deed? Is that correct.

The amount I pay is based on the original value (£20,000) and the current value (£180,000) = £160000.

your start point is the probate valuation at the date of your mother's death . I somehow doubt that was 20K,

was any inheritance tax actually paid when mothers's estate was dealt with ?
If yes then the estate valuation will include the house value and you can use that figure with absolute certainty that HMRC will accept it
if no IHT was paid then HMRC have not yet accepted the probate value (aka "ascertained the valuation"). A probate value exists because the grant of probate could not have been obtained without a value for the property being listed, so speak to whoever did the executor role - you then use that value in your CGT calculation but be aware that HMRC may not accept it and may substitute their own value


let us say the probate value was 80K, you thus have a gross gain of 100k. You wish to give a half share to your son so your gross gain on disposal is 50k. You have no relief that you can claim against that, but you can deduct the personal allowance (£11,000) leaving a net taxable gain of £39,000

if you really have no taxable income at all then the CGT you must pay on 39k is wholly charged at 18% (rather than a mix of some at 18% and the rest at 28%) meaning you must pay £7,020 in tax. If you do not declare this HMRC will find out about the change from the Land Registry and that would not be good for you!

I am sorry if this is not what you want to hear but you cannot expect to pass an asset down a generation without having tax implications otherwise everyone would be at it. So the question is do you have £7k in cash with which to pay your CGT? If you don't then your plan is dead unless your son pays you at least £7k for his share and you use that cash to pay your tax with


BTW - as you say you have no income be very careful if you claim benefits having given away a significant portion of the capital you own. That could come back to bite you if you say you only have half the capital you had before since it is an odd thing to do when you have no income and could look like an attempt to manipulate the benefits system - not that i am suggesting that is your motive !

SunReader

There is also deprivation of assets rules to consider - get some proper legal advice on this.

If you are minded to do this, do it soon as you can, if you ever need to pay for care fees in future you will be classed as 'self funding' as the house equity will be taken into account. No hard an fast rule, but 7 years is considered an appropriate timescale between transfer and means assessments by some.

Nothing worse than having wealthy parents who are too lazy to protect
family inheritance that they too have benefited from. Making a decision not to pass it on is fine too, just make a decision rather than let it go by default as no-one bothered to do anything when they could.

specialboy

sarbaloosa wrote: »

Hi Book,

Thank you for this and I am also thankful to all other contributors too.

The property I wish include my son on was left by my late mother. I currently am not working and have no taxable income.

If I am following your comment correctly, the only thing I will have to pay for is CGT as I will have triggered a 'CGT event' by wanting to include my son on the deed? Is that correct.

The amount I pay is based on the original value (£20,000) and the current value (£180,000) = £160000.

Do I have to pay a legal fee for transfer? How much is this? Based on the above information, how much CGT would I need to pay?

Many thanks,

Your posts don't add up, above you say you aren't working but on the 11th on another thread you suggest 'blasting your salary on shares'