Daughter living in second home - can I put her on the title deeds ?

Boris27

Many thanks for replies - aware of pitfalls regarding marriage etc - there was an interesting reply about lending her the money to buy a house. If my wife and I sold the house (paying any CGT) and lent her the money to buy a first home on the understanding of a regular monthly payback without interest - would any money she paid back not be taxable income ?

Kynthia

Boris27 wrote: »

Many thanks for replies - aware of pitfalls regarding marriage etc - there was an interesting reply about lending her the money to buy a house. If my wife and I sold the house (paying any CGT) and lent her the money to buy a first home on the understanding of a regular monthly payback without interest - would any money she paid back not be taxable income ?

I believe that you only need to declare any interest she pays you as taxable income. The capital repayment of the loan not taxable.

xylophone

Does your daughter like the current property?

If so, can you sell it to her on an interest free capital repayment basis?

You establish the current market value of the property, work out how much capital she can afford to repay (per month/year etc) and she repays the "loan" rather than rent?

You would transfer the house to her against a first charge to protect the value of the "loan". This would all be done through a solicitor.

I imagine that this would count as deferred consideration for CGT so you would need to clarify tax treatment with HMRC.