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New Inheritance Tax and Gifting Property
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[Deleted User]
Posts: 0 Newbie
My husband and I are buying a new home (not yet exchanged contracts).
We are gifting our current home to our 28 year old daughter.
Our current home is only in my husband's name.
In order to
1. Avoid paying the Osborne 2nd home tax(although we know we can claim it back later)
and to 2. Ensure we can pass on the property and avoid Inheritance Tax and take advantage of the new Inheritance Tax Allowance
Do we have to add my name to the Land Registry on our current home (to case my husband dies within the next 7 years or if I do)? Would there be any good reason for adding my name to current land reg for our current home before we pass on to our daughter?
We are gifting our current home to our 28 year old daughter.
Our current home is only in my husband's name.
In order to
1. Avoid paying the Osborne 2nd home tax(although we know we can claim it back later)
and to 2. Ensure we can pass on the property and avoid Inheritance Tax and take advantage of the new Inheritance Tax Allowance
Do we have to add my name to the Land Registry on our current home (to case my husband dies within the next 7 years or if I do)? Would there be any good reason for adding my name to current land reg for our current home before we pass on to our daughter?
0
Comments
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Unless your daughter actually wants to live in the house, I would sell and gift the cash instead. What size of gift are we talking about here?0
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Yes thanks - daughter wants the house and the New Inheritance Tax Allowance which was taper introduced in 2017, means that probably , if we gifted it and did not live for seven years it would not impact on IHT. Our current house has no mortgage so she would not be in for Stamp Duty.
It is in my husband's name and I heard somewhere that it would be useful to have it both our names from future tax point of view. Just wondered if ay pointers on this.
We have thought of selling it and giving her the money. But she wants to live in it and rent out two rooms to lodgers.
Small terrace 2+1 bed terrace worth about £3000 -
At £300k it is below his nil rate band so assuming he is leaving all his estate to you there will be no IHT to pay on that gift should he die within 7 years, but it would mean that only 8% of his nil rate band could be transferred to your estate should that happen.
If the house was owned 50/50 then the impact would be halved but the risk is doubled, so it is a bit swings and round abouts really, but if your estate plus this gift is under £1M it really does not matter too much.0 -
That's what I thought - thanks0
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