Capital Gains Tax on transfer of property

purdyoaten

Stellar_Star wrote: »

I thought that it would be a "purchase too" ish, but if she gave me the £20,000 I just didn't want to get stung by tax on it as a gift, as we arent married and I'm sure I heard you're not allowed to gift more than £3000 in a year. At least me giving her some equity is covered as I can dispose of it as I wish.

It wont be exactly 45:55, it was a rough guess. We can't do the proper calculations until the day it happens, but it will be split fairly on the transfer of equity form.

As others have said - there is no tax on gifts and you can gift as much as you like. Only if you should die within seven years of the gift AND your estate exceeds £325000, does the gift becomes relevant. 'Not allowed to gift more than £3000' is incorrect.

Mojisola

Stellar_Star wrote: »

I'm sure I heard you're not allowed to gift more than £3000 in a year.

You can gift £3000 in one year without it having any effect on inheritance tax.

You can gift as much as you like in any one year. It's only if you die within seven years of the gift and your estate is liable to pay inheritance tax that the amount matters. It would then be your estate that pays the tax.

kidmugsy

You really want to sign an agreement about how to handle things if you should split up, what share of the monthly mortgage payment you'll each make, how you'll share the cost of repairs, decoration, improvements, and so on.

kidmugsy

kidmugsy wrote: »

You really want to sign an agreement about how to handle things if you should split up, what share of the monthly mortgage payment you'll each make, how you'll share the cost of repairs, decoration, improvements, and so on.

P.S. And you probably want wills: if one of you dies will you leave your share of the house to the other?