Buying a house outright for my sister...

Hoploz

... Or if you fall out for some reason in future

Carrieanne

Yes, I'm familiar with how the system operates, that's why I qualified my remarks with '(or some part of it)' regarding HB.

Mossfarr

booksurr wrote: »

only if the rental property is in Scotland. You do not need to register as a Landlord if the property is anywhere else in the UK since it is not going to be a house in multiple occupation, it is only going to have your sister in it (plus partner if she wants of course)

This is not correct, there are several Local authorities in England which require all landlords to register each of their properties - and charge them for the privilege! Liverpool City Council charges £400 per property for a five year licence and not just in the 'poor' areas as suggested by flash67.

Pixie5740

Landlords need to be registered in Wales too now I think although they can get round this by using a letting agent who is registered.

xylophone

Could you explain in more detail what a first charge entails? I have not heard of this before?


Would she first have to pay tax on the money I gave her, would it be classed as a gift it is to buy property with etc?

I was suggesting that you made a loan to your sister.

This is a private mortgage with you as mortgagee.

Your solicitor would draw up the agreement which would detail how the loan was to be repaid.

You might choose capital and interest/capital only/interest only.

If you receive interest you must declare it to HMRC.

The charge would be registered at the Land Registry so that the house could not be sold without your loan being repaid.

If you wish to make an outright gift to your sister, she has no tax to pay on the gift,but remember the implications for IHT.

https://www.gov.uk/inheritance-tax/gifts