FTB who should we put on the house deed?

PokerPlayer111

G_M wrote: »

There is no Capital Gains Tax on a gift, so no, you won't have to pay CGT.

She may or may not have to pay Capital Gains Tax when she gives you the gift. That would depend on whether she has made a capital gain. If she had invested, say, £80,000 (which she perhaps inherited) and then sells it for £100,000 (in order to give it to you), then she'll have made a capital gain of £20,000. As she has a CGT allowance each year of £11,000, that means £9,000 would be taxable (at 28% for a lower rate tax payer).

But if she inherited £100,000 and then gave it to you, there would be no capital gain.

I thought you could only gift someone 3k per year and 6k if you did not gift the same person the year before?

She has a 100k capital gain on other assets. Its not housing capital gain at 28% so rates are 10%-20% depending on income - hopefully i've got that right?

G_M

There are several ways to get a will

* write it yourself and hope it is legally binding
* buy an 'off-the-shelf' will and fill it in (WH Smiths? Office World?). This may be OK for a very simple will
* pay a professional the proper fee. You are not just paying for the time they spend, but for their expertise and knowledge and advice
* get a free will written by a solicitor via a charity. Many charities arrange this and pay the solicitor, in the hope that you leave them a bequest in the will. Please do not abuse this system. If you do it, DO leave the charity something i the will
* take advantage of 'free will week' each year for discounted wills

G_M

PokerPlayer111 wrote: »

I thought you could only gift someone 3k per year and 6k if you did not gift the same person the year before?

She has a 100k capital gain like. Its not housing capital gain at 28% so rates are 10%-20% depending on income - hopefully i've got that right?

You are very confused!

I believe the 3K & 6K you refer to are nothing to do with Capital Gains Tax. They relate to Inheritance Tax, and would only apply if the donor (gift-giver) dies within 7 years of giving you the gift.

What do you mean by "She has a 100k capital gain like."? What did she buy that has increased in value by £100,000?

There is no difference in CGT rates between 'housing capital gain' and other capital gains.

The 10% and 20% you refer to are not capital gains tax rates, they are Income Tax rates. Did she earn this £100,000 through her employment? If so, she should be completing an HMRC self-assessment tax return. (and an earning of £100,000 would be at the higher rate, not 10%!)

Pixie5740

PokerPlayer111 wrote: »

I thought you could only gift someone 3k per year and 6k if you did not gift the same person the year before?

No idea where you're getting that from.

PokerPlayer111 wrote: »

She has a 100k capital gain like. Its not housing capital gain at 28% so rates are 10%-20% depending on income - hopefully i've got that right?

Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. It’s the gain you make that’s taxed, not the amount of money you receive. If she really has made a capital gain when disposing of an asset (not necessarily property) then she will have to pay CGT which has nothing to do with what she then does with the money, gifting it to you for example.

The rate due will depend on whether she is a basic, higher or additional rate tax payer.

https://www.gov.uk/capital-gains-tax

PokerPlayer111

G_M wrote: »

You are very confused!

I believe the 3K & 6K you refer to are nothing to do with Capital Gains Tax. They relate to Inheritance Tax, and would only apply if the donor (gift-giver) dies within 7 years of giving you the gift.

What do you mean by "She has a 100k capital gain like."? What did she buy that has increased in value by £100,000?

There is no difference in CGT rates between 'housing capital gain' and other capital gains.

The 10% and 20% you refer to are not capital gains tax rates, they are Income Tax rates. Did she earn this £100,000 through her employment? If so, she should be completing an HMRC self-assessment tax return. (and an earning of £100,000 would be at the higher rate, not 10%!)

Its from digital currency asset which has been a long term hold. so as i read on the HMRC website, gains from other assets are 10-20% capital gains tax - depending on earnings. is that right?

davidmcn

PokerPlayer111 wrote: »

£250 each = £500? and we only want it to say if 1 of us dies the other gets the house, no need for full will. I dont know if that is hugely cheap, very easy pay day for solicitor.

Or less than that, or even free. Shop around if you like. They're often thrown in for cheap with conveyancing.

Or DIY if you know what you're doing - if you c0ck it up it'll be much more than £500 to sort it out...

PokerPlayer111

Pixie5740 wrote: »

No idea where you're getting that from.



Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. It’s the gain you make that’s taxed, not the amount of money you receive. If she really has made a capital gain when disposing of an asset (not necessarily property) then she will have to pay CGT which has nothing to do with what she then does with the money, gifting it to you for example.

The rate due will depend on whether she is a basic, higher or additional rate tax payer.

https://www.gov.uk/capital-gains-tax

Ok so lets ignore the whole gifting thing.

If someone has £100k capital gain and its not from property + their income earnings are zero for that tax year. You'd deduct capital gains tax free allowance of £11.3k = £88.7k. So you pay 10% capital gains tax for the first £45k and 20% capital gains tax for the £43.7k?

£13.240k captial gains tax due?

Is that right?

SDLT_Geek

PokerPlayer111 wrote: »

Hi. It's the OP's GF now

I'm thinking of the BF going on the deed to house number 1 with us both putting 50% cash to it.
Me going on deed for house number 2 and both of us putting 50% to it.
All cash buys, no mortgage.

It seems to me likely that if the first house is bought in the name of your boyfriend with you putting half of the cash into it then there would be a "resulting trust". So your boyfriend would hold the property on trust as one half for himself and one half for you. For stamp duty land tax purposes you would be joint buyers.


If you wanted to displace the resulting trust you could do this by clearly establishing that the money you put in serves another purposes, such as being a loan from you to him or is a gift from you to him. There are clearly many important implications that follow from the various choices as to how to arrange this.

PokerPlayer111

SDLT_Geek wrote: »

It seems to me likely that if the first house is bought in the name of your boyfriend with you putting half of the cash into it then there would be a "resulting trust". So your boyfriend would hold the property on trust as one half for himself and one half for you. For stamp duty land tax purposes you would be joint buyers.


If you wanted to displace the resulting trust you could do this by clearly establishing that the money you put in serves another purposes, such as being a loan from you to him or is a gift from you to him. There are clearly many important implications that follow from the various choices as to how to arrange this.

I think we are just going to go with both names on the property and deal with any future purchases as and when. Also get a will to cover in event of death other 1 gets property.

Right now trying to work out the capital gains, pretty sure it is 20% max though on other assets that aren't property. Since we run our own business we can actually buy tons of stock which make both our earnings zero for the year to keep capital gains tax at lowest. Might need a thread in correct section etc.

p00hsticks

PokerPlayer111 wrote: »

I think we are just going to go with both names on the property and deal with any future purchases as and when. Also get a will to cover in event of death other 1 gets property.

Although wills for both of you are always a good idea, in this case you don't actually need one to achieve your aim - you just buy the property as 'joint tenants' (where survivor automatically inherits) rather than 'tenants in common' (where each party owns a share that forms part of their estate when they die).

Your solicitor should be talking you through your options as part of the house purchasing process.