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Transferring property to my wife - CGT and Stamp Duty
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Andy1971
Posts: 1 Newbie
Hello, lovely forum people.
Some advice, please.
I'm 'gifting' half of our property (main residence, in which we will continue to live) to my wife.
Can anyone point me to the very latest advice on Capital Gains Tax and Stamp Duty? There seems to be all sorts out there, as it has changed so much over time.
It looks like CGT will not be an issue as it is genuinely a gift with no comebacks. On Stamp Duty, I think we will be liable for 2% on any mortgage over the threshold of £125k (in this case, on a mortgage of £190k, that would be £1,300). Does that sound right?
And how easy are the forms, or would you recommend employing a solicitor?
Thanks very much in advance.
Some advice, please.
I'm 'gifting' half of our property (main residence, in which we will continue to live) to my wife.
Can anyone point me to the very latest advice on Capital Gains Tax and Stamp Duty? There seems to be all sorts out there, as it has changed so much over time.
It looks like CGT will not be an issue as it is genuinely a gift with no comebacks. On Stamp Duty, I think we will be liable for 2% on any mortgage over the threshold of £125k (in this case, on a mortgage of £190k, that would be £1,300). Does that sound right?
And how easy are the forms, or would you recommend employing a solicitor?
Thanks very much in advance.
0
Comments
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Straightforward gifts between spouses are not subject to CGT or Stamp Duty.
If part of the mortgage was transferred to your spouse then the share of the mortgage would be a consideration for Stamp Duty and thus taxable - but if this has not occurred then no Stamp Duty payable.0 -
Why would you want to do this? Is it to do with future rental (ie reduce income tax) or some other reason?0
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You are gifting half the property - but then you talk about a mortgage. Can you confirm whether the property is mortgaged? If it is, then you cannot change the ownership without the approval of your lender.0
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Hi,
If your plan to transfer your residential property to your wife is motivated by the purchase of a second property (avoiding the extra layer of stamp duty on additional properties ) married couples are treated as one entity and the additional 3% stamp duty will still be due (on the purchase of further property).
Tlc0 -
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Hello, I have a semi-similar question.
I brought a house with my partner in 1984. We separated in 1990. I stayed in the house with our children. Over time I have paid my ex-partner through installments for his share in the house.
I now wish to move to a smaller house. My ex-partner will “gift” me his share of the house.
My question is, will I now have to pay capital gains tax.
Grateful for any help.
Thanks0 -
Hello, I have a semi-similar question.
I brought a house with my partner in 1984. We separated in 1990. I stayed in the house with our children. Over time I have paid my ex-partner through installments for his share in the house.
I now wish to move to a smaller house. My ex-partner will “gift” me his share of the house.
My question is, will I now have to pay capital gains tax.
Grateful for any help.
Thanks
I hope so.0 -
Why???????sparky130a wrote: »I hope so.0 -
You have given no figures, so it's impossible to give a definitive answer. You have no CGT liability, as you are disposing of your Principle Primary Residence. Your ex-partner, however, is open to a CGT liability, depending on the figures. And I would expect in 27 years the property has appreciated enough that there would be some CGT liability.Hello, I have a semi-similar question.
I brought a house with my partner in 1984. We separated in 1990. I stayed in the house with our children. Over time I have paid my ex-partner through installments for his share in the house.
I now wish to move to a smaller house. My ex-partner will “gift” me his share of the house.
My question is, will I now have to pay capital gains tax.
Grateful for any help.
Thanks0 -
Hello, I have a semi-similar question.
I brought a house with my partner in 1984. We separated in 1990. I stayed in the house with our children. Over time I have paid my ex-partner through installments for his share in the house.
I now wish to move to a smaller house. My ex-partner will “gift” me his share of the house.
My question is, will I now have to pay capital gains tax.
Grateful for any help.
Thanks
You won't because it's your primary residence. Your ex might though because it's not his primary residence.0
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