Transfer House to Girlfriend

fazrewards

There is a genuine reason for it and I am currently not in market for another house.

There are currently tenants living in the house and have paid rent for the last 4 years including council Tax. Will this have impact on taxes? All i am trying to do is just get a realistic idea before I get hit with a massive invoice, so want to ensure all areas are covered and paid of.

Thanks

gettingtheresometime

fazrewards wrote: »

There is a genuine reason for it and I am currently not in market for another house.

There are currently tenants living in the house and have paid rent for the last 4 years including council Tax. Will this have impact on taxes? All i am trying to do is just get a realistic idea before I get hit with a massive invoice, so want to ensure all areas are covered and paid of.

Thanks

There probably is a genuine reason for it, and perhaps its one that you don't want to share with the world & his wife.

However bear in mind that there way be unthought of consequences of doing this - sometimes bad advice can be given if the whole situation isn't fully explained & sometimes a better alternative can be suggested if it is.

melanzana

I am baffled that people who would transfer a property worth thousands would rely on replies on an internet forum about the transaction.

Get independent legal advice my friend. Money well spent.

macman

fazrewards wrote: »

There is a genuine reason for it and I am currently not in market for another house.

There are currently tenants living in the house and have paid rent for the last 4 years including council Tax. Will this have impact on taxes? All i am trying to do is just get a realistic idea before I get hit with a massive invoice, so want to ensure all areas are covered and paid of.

Thanks

You are not responsible for collecting and paying the CT of your tenants (if that is what you are suggesting you are currently doing). Is this property a flat or an HMO? If an HMO, is it licenced? Joint tenancies or individual?

00ec25

fazrewards wrote: »

There is a genuine reason for it and I am currently not in market for another house.

There are currently tenants living in the house and have paid rent for the last 4 years including council Tax. Will this have impact on taxes? All i am trying to do is just get a realistic idea before I get hit with a massive invoice, so want to ensure all areas are covered and paid of.

Thanks

why are you repeating your question yet have not answered the questions GM asked which would enable us to give you the reassurance you repeatedly seek?

of course transferring a property to someone else impacts taxes if you are talking about income tax liability on the rent. You don't get it any more, so it's no longer your tax liability is it.

as for "council tax", as suggested above, unless this is let as an HMO or you yourself live in the property as the (current) resident LL, you are not allowed to charge for council tax since it is not you who is liable for it if they are genuine joint tenants.

perhaps you do need to see a professional adviser to unpick your situation and ensure corrections are made, rather than carrying on here not answering questions and therefore potentially getting bad advice?

fazrewards

The next step is to go get some legal advice but I am pretty much starting from scratch hence wanted some knowledge on the issue. Apologies i also missed GM questions, let me just fill them now:

* is money being paid for the property? How much? - No the transfer would be stated as a gift.

* Have you used any/all of your Capital Gains Tax allowance for the tear in question (2017-18 I assume)? - No nothing was used.

* 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? - No Mortgage on the property.

* 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? - No hence we wanted to get a idea here before heading into legal discussions.

Appreciate your help guys.

Lord_Baltimore

Whatever 'advantage' there may or may not be in this transaction, it is not without complication and risk. You need professional advice from a financial adviser, solicitor and shrink. Go to the shrink first .

theGrinch

I would never transfer any assets of worth to a girlfriend who can run off.

MobileSaver

martindow wrote: »

Is the plan ... to avoid paying the extra 3% stamp duty for instance?

I suspect this is exactly the reason for the transfer; as others have said, while I can understand the OP being coy, without the full story any advice here can at best be incomplete and at worst simply wrong.

OP you need to explain exactly what you are trying to achieve, either here on the thread or to a professional adviser, otherwise this could end in a world of pain.

00ec25

fazrewards wrote: »

* is money being paid for the property? How much? - No the transfer would be stated as a gift.

* 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? - No Mortgage on the property..

OK, no o/s mortgage, no money passes between you and GF in "consideration" of the transfer therefore no SDLT is due as there is no chargeable consideration

if the plan is to avoid the higher rate SDLT therefore do not want to have the current property in your name because you are buying a further property which would trigger it, your plan would work as long as you do not get married and GF is not a co-owner of the new property obviously. When you do marry you would count as one "unit" each owning a property therefore the higher rate would be triggered if she then transfers any or all of the ownership back to you.

fazrewards wrote: »

* Have you used any/all of your Capital Gains Tax allowance for the tear in question (2017-18 I assume)? - No nothing was used..

the transfer counts as a disposal for CGT purposes given you are not married to the GF. Therefore you (not the GF) will have to pay CGT if the gain exceeds your 17/18 allowance.

fazrewards wrote: »

* 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? - No hence we wanted to get a idea here before heading into legal discussions.

read GM's guide in post #5 above

I note you have not clarified the council tax issue or HMO/ resident landlord status issue. All those questions remain highly relevant in the context of you "getting an idea"