selling my house to my partner

producer

I am 65 and my partner is 50. We have 3 children nearly at college age. We own our house mortgage free jointly. I would continue to live in the house.

What are the implications (mostly tax-wise) if I were to sell my share of the house to my partner? I need to pay off a tax bill and free up a small sum of money for other things. I would be selling to her for half my share. In other words, the house is worth about £190K and I would sell for about £40K. My partner has a public sector job that brings her about 19K pa and I have sporadic income of about the same.

Would I have to pay Tax on my gain from this transaction. Would she have a tax implication from suddenly owning the family home outright ?

Thank you in advance for your comments.

zygurat789

producer wrote: »

I am 65 and my partner is 50. We have 3 children nearly at college age. We own our house mortgage free jointly. I would continue to live in the house.

What are the implications (mostly tax-wise) if I were to sell my share of the house to my partner? I need to pay off a tax bill and free up a small sum of money for other things. I would be selling to her for half my share. In other words, the house is worth about £190K and I would sell for about £40K. My partner has a public sector job that brings her about 19K pa and I have sporadic income of about the same.

Would I have to pay Tax on my gain from this transaction. Would she have a tax implication from suddenly owning the family home outright ?

Thank you in advance for your comments.

Transfers between spouses or between civil partners are treated as if they have not happened, with the original cost being retained.
If you sell to a connected person then HMRC have the right to substitute the market value for any value you may have used but this is the sale of your home which you have never rented, have you? If taht is the case there will be no taxable gain.
Half an occupied house is not necessarily worth 50% of the value of the whole house.

producer

Thank you for taking the trouble to reply. I am not entirely sure I understand everything you said, but my aim was not to alter or adjust my tax liabilities but simply to raise a small amount of finance - without giving my partner any tax problems for the future.