Tax Liabilities for addition to Title Deeds

fmck888

Hi there,

Just a quick question as a bit in the dark. We are currently applying to remortgage and I have previously not been listed on the Title Deeds of the property as this has traditionally been my partner's home. We are now remortgaging and adding myself to the deeds, however we are unclear on whether this has any further tax implications to myself? Our conveyancer has suggested we take independent legal advice so just thought our first stop should be here?
Thanks kindly.

TrickyDicky101

Hi

There are potential SDLT considerations but that is dependent on the size of the mortgage (how big is it?) and also whether or not you are paying your partner any consideration (other than by joining them on the mortgage)?

fmck888

Hi,

The mortgage is 75 and effectively I will be paying it from this point on.

TrickyDicky101

Assuming no other 'consideration' then the mortgage would need to be in excess of £250k for their to be an SDLT impact - this isn't the case so SDLT won't apply.

Since it's been his/her home, there shouldn't be any CGT implications.

There *could* be potential IHT implications if your partner dies in the next 7 years but this would depend on the overall size of their estate.

Thrugelmir

Your partner may wish to protect their interest in the existing equity in the property. To cover the eventuality that your relationship breaks down. This advice is best given by someone independent of your conveyancing solicitor who by virtue of the transaction is representing you both. The reasoning behind the "independence" is that should the matter end up in court this could have a material bearing on the outcome.