looking to buy - Stamp duty concern

pablogp

Afternoon,

I was wondering if someone could help me.

I'm looking to purchase a property with my wife but will be liable to the extra 3% stamp duty charge as this would be my second home (My sister and I inherited the family home from my parents).

If I was to remove my name from the house that my sister and I inherited, therefore no longer being liable to the extra 3% stamp duty on the property my wife and I are looking to purchase, would this be deemed as tax evasion and would I potential suffer repercussions from the authorities?

thank you.

Mojisola

pablogp wrote: »

I'm looking to purchase a property with my wife but will be liable to the extra 3% stamp duty charge as this would be my second home (My sister and I inherited the family home from my parents).

If I was to remove my name from the house that my sister and I inherited, therefore no longer being liable to the extra 3% stamp duty on the property my wife and I are looking to purchase

Is it really worth giving away half a house to save 3% stamp duty?

Bluebirdman_of_Alcathays

It would be absolutely fine - you can give whatever you want away.


However, if the house has substantially increased in value you'd need to pay CGT on this (unless you live there - do you?)


And, you would no longer own the house - so it would be your sisters to do what she wants with, I personally wouldn't give away a 6 figure asset to save a 4 figure bill.

noh

Where do you live at present?
Are you selling your main residence and replacing it with another?

pablogp

Bluebirdman_of_Alcathays wrote: »

It would be absolutely fine - you can give whatever you want away.


However, if the house has substantially increased in value you'd need to pay CGT on this (unless you live there - do you?)


And, you would no longer own the house - so it would be your sisters to do what she wants with, I personally wouldn't give away a 6 figure asset to save a 4 figure bill.

Thank you. Yes I do live there which would mean I would not be liable to CGT?

However, at what point would I be able to put my name back on the deeds along with my sisters if I ever wanted to?

chelseablue

pablogp wrote: »

Thank you. Yes I do live there which would mean I would not be liable to CGT?

However, at what point would I be able to put my name back on the deeds along with my sisters if I ever wanted to?

Im not sure I'd bother doing all that just to save on the stamp duty.


How much is the stamp duty you would have to pay?

alchemist.1

pablogp wrote: »

Thank you. Yes I do live there which would mean I would not be liable to CGT?

However, at what point would I be able to put my name back on the deeds along with my sisters if I ever wanted to?

That would be the tax evasion.

DTDfanBoy

It may be exempt if you inherited within the last three years and you only own 50% or less of the property, or if your share of the property if worth less than £40,000.

Alternatively if you sell your share of the property to your sister within three years you'll be able to reclaim the SD.

marksoton

pablogp wrote: »

Thank you. Yes I do live there which would mean I would not be liable to CGT?

However, at what point would I be able to put my name back on the deeds along with my sisters if I ever wanted to?

!!!!!!. Stop trying to have your :bdaycake: and eat it.

And MSE, please can we have a sticky or dedicated thread for all these SDLT questions.....

pablogp

alchemist.1 wrote: »

That would be the tax evasion.

I thought as much. Thanks for your help. And if I put it in my wife's name?

Lioness_Twinkletoes

pablogp wrote: »

I thought as much. Thanks for your help. And if I put it in my wife's name?

Um. If you and your wife are planning on buying a home together how does putting your asset in her name help you evade tax?