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Living together - Capital Gains Tax liability on property transfer
SoFedUpOfBeingRippedOff
Posts: 14 Forumite
My partner and I are living together (unmarried) in my house which I have owned for several years. I would like to transfer half of the house into his name and also the mortgage into joint names. He has another house that he rents out which is in his name only. I don't understand the capital gains tax situation - would there be a capital gains tax liability? Who would be liable - him or me? The property is our home. Can anyone please explain? Thanks.
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Comments
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No CGT liability.
Possible SDLT liability on the transfer of equity. Speak to solicitor who will handle the matter to establish the position.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
When he sells his (rented) property, he will have a CGT liability as it is not his main residence.
Transfering your property into joint names:
* no CGT
* must have the agreement of the mortgage lender. Probably require a new joint mortgage
* SDLT will be payable as he's taking on the mortgage (consideration). It will also involve the additional 3% SDLT as he will have 2 properties at the end of the transaction.
Why are you doing this? What is the aim? Why not get married (joint property ownership is a bigger commitment than marriage!). Why is he not also transferring his property into joint names with you?
.....??????0 -
Thanks for your replies. That is a relief. I understand about the stamp duty. As to why, not ready to get married yet, possibly to raise some extra money on the mortgage. One step at a time. Really appreciate your responses. Thanks again.0
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You might indeed qualify for a larger mortgage if both your salaries are considered.SoFedUpOfBeingRippedOff wrote: »As to why, not ready to get married yet, possibly to raise some extra money on the mortgage..
But " not ready to get married yet"? Makes no sense. Joint property-ownership is a bigger commitment than marriage. If you're ready for joint property ownership, you're ready for marriage!0
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