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Transfer of flat ownership
heron8888
Posts: 7 Forumite
I jointly own a buy to let flat valued at 100,000 which is nearly paid off, so there is no mortgage interest to offset against tax we both pay 40 percent tax.
Can I pay off remaining amount of mortgage and transfer ownership to my daughter who earns very little ? and is there any tax to pay ?
Can I pay off remaining amount of mortgage and transfer ownership to my daughter who earns very little ? and is there any tax to pay ?
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Comments
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How do you jointly own the property? Joint tenants or tenants in common? Will you just be transferring your share to your daughter or is the other joint owner going to transfer ownership to her too?0
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I jointly own a buy to let flat valued at 100,000 which is nearly paid off, so there is no mortgage interest to offset against tax we both pay 40 percent tax.
Can I pay off remaining amount of mortgage and transfer ownership to my daughter who earns very little ? and is there any tax to pay ?
You can gift it to her but CGT would still be assessed as a disposal at market value.
If you gift it to her you will also be giving her the future rental income. HMRC will take a dim view if she just pays it all back to you.
You might be able to do something clever with a trust, I am not sure.0 -
I think my brother and I are joint owners , and we would both like to gift it to children who are over 18, we brought it for 90000 it now has a value around 105000, so would we pay tax on 15000 at 40 percent/0
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You can pay off the mortgage and make the gift but need to bear in mind CGT and possibly IHT. You will be looking at a PET?
https://www.moneyadviceservice.org.uk/en/articles/gifts-and-transfers-exempt-from-inheritance-tax
A gift cannot be a PET if you reserve a benefit, for example making a condition that the new owners pass the rental income to you.
You and the joint owner have a CGT allowance.
https://www.gov.uk/capital-gains-tax/work-out-need-to-pay
https://www.gov.uk/inheritance-tax/passing-on-home0 -
No we are on the deeds as joint owners as opposed to in common0
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