Transfer House to Girlfriend

fazrewards

Hi all,

I am currently in the process of transferring a house i own to girlfriend.

I understand the process is to fill in the TR1, ID1 and AP1 forms.

My question is once they filled in and sent:
- How long does the process take?
- The house is currently occupied by tennants who are renting the property. What overall charges will have to be paid, if any?
- Does Stamp Duty Tax have to be paid?
- The house value has gone up no more then £8k in value since i purchased house 5 years ago, is there any other tax that need to be paid?
Thank You

da_rule

The forms you've listed are correct.

There are special rules relating to linked persons when dealing with SDLT. If you have been renting the property out you will also have to get some advice on capital gains tax as it's a transaction under value.

fazrewards

Do you know if linked persons include girlfriend?

We are due to get married in the future but at the moment I want to confirm, so I can plan any tax issues with the forms and pay what is required if i have to.

Pixie5740

Is the property currently mortgaged? Will your girlfriend be paying any consideration for the property or will she be getting the property gratis?

G_M

* is money being paid for the property? How much?

* Have you used any/all of your Capital Gains Tax allowance for the tear in question (2017-18 I assume)?

* is there a mortgage on the property? Have the lenders agreed to the transfer, or is the mortgage being paid off? If so, is a new mortgage being taken out? I assume any mortgage is a BTL, or residential with CTL?

* does your girlfriend know what's involved with being a landlord? Does she know about the Landlord & Tenant Act 1985 section 3 ? Is she clued up about her future tax liability? And other liabilities?

* New landlords: advice, information & links

00ec25

da_rule wrote: »

There are special rules relating to linked persons when dealing with SDLT. If you have been renting the property out you will also have to get some advice on capital gains tax as it's a transaction under value.

irrelevant. "Connected persons" are clearly defined in law:

s.286 Taxation of Chargeable Gains Tax Act 1992
http://www.legislation.gov.uk/ukpga/1992/12/section/286/enacted

husband or wife, or is a relative, or the husband or wife of a relative, of the individual or of the individual’s husband or wife.

In this section “relative” means brother, sister, ancestor or lineal descendant.

a mere girlfriend is not (yet) a connected person as tax law does not take account of living in sin

fazrewards wrote: »

- How long does the process take? read the Land registry website for the latest info on their processing times
- The house is currently occupied by tennants (SPELLING :mad: )
who are renting the property. What overall charges will have to be paid, if any? if you write the notification of change of LL yourself then there will be no charges.
- Does Stamp Duty Tax have to be paid? depends if there is an o/s mortgage and how much it is
- The house value has gone up no more then £8k in value since i purchased house 5 years ago, is there any other tax that need to be paid? you will have to calculate the CGT liability, but if that is indeed 8k and you still have at least that much of your personal allowance remaining then, no, there are no other taxes to pay

fazrewards

Thanks for confirming

There is currently no mortgage on the property.

From the sounds of it, I am correct in saying the property once transferred over, there is no taxes to pay? The CGT I take it with a increase of value in £8k since I purchased it, there are no taxes to pay?

Thank You

G_M

fazrewards wrote: »

Thanks for confirming

There is currently no mortgage on the property.

From the sounds of it, I am correct in saying the property once transferred over, there is no taxes to pay? The CGT I take it with a increase of value in £8k since I purchased it, there are no taxes to pay?

Thank You

Can't be sure.

* SDLT - maybe. You need to answer the Qs asked
* CGT - maybe. We don't know the rest of your tax affairs.

gettingtheresometime

Can I be your girlfriend?

getmore4less

This is a no strings absolute out right gift?

After the transfer she can walk away with the property, sell it, give it away, be managing the property and taking all the rental income.

martindow

Apart from your staggering generosity is there any other motive to giving this house away?

I wonder if there is an ulterior motive to this. Is the plan for it to be given back after you've bought another house trying to avoid paying the extra 3% stamp duty for instance?