Gifting home to child

martinpaul1991

What is PET? How would we arrange this, will the solicitor take care of it all? Daughter will be happy to to give us an extra £1k if it keeps things neat and I suspect at a mid market valuation it’s worth 55k max. Sorry to sound a bit confused, but when I hear terms like surveyors (to value), accountants, solicitors, I’m just aware the costs are adding up and it’s me I suspect that will have to bare them and the whole point was to give this to my daughter as cheaply as possible what with the value being so little.

Also, I’m not sure what weight it carries, however this £25k already given to me was a few months ago simply by bank transfer (with a reference of ‘house’). Appreciate now that was maybe not the correct way to do it however it was a bit of a pressing action at the time, and it’s done now.

When daughter is clearing off the remaining mortgage is it best she simply transfers me the monies to do so at my end, then a case of a valuation and the other admin via the solicitor before transferring the deeds over to her?

davidmcn

PET = Potentially Exempt Transfer i.e. the lifetime gifts which only matter if you kick the bucket within 7 years. There's no point in your daughter giving you more cash to make it not a PET, as she'd just be adding to your estate which would be assessed for Inheritance Tax at the full rate anyway (unless you spend it first!).

I don't think you need to get it surveyed for tax purposes but you may need to justify whatever value you're attributing to it.

When daughter is clearing off the remaining mortgage is it best she simply transfers me the monies to do so at my end, then a case of a valuation and the other admin via the solicitor before transferring the deeds over to her?

The norm would be for money to be handed over via solicitors and your solicitor redeems the mortgage simultaneously with the transfer of title, but if she has enough cash (and trusts you) then she could do that at an earlier stage and that avoids a small amount of the legal work.

As for solicitors, in theory one solicitor can act for both parties (this is an exception from the general conflict of interest rules), though possible they'd be uncomfortable doing so, in which case you could one party represented by the solicitor (better that's your daughter), and the other party unrepresented.

DE_612183

can't it just be treated as a sale - daughter has paid £25k deposit and will pay £17k on completion.
Agreed sale price of £42k.

00ec25

Dave46049 wrote: »

can't it just be treated as a sale - daughter has paid £25k deposit and will pay £17k on completion.
Agreed sale price of £42k.

that is indeed the cash position, however, as mentioned they are connected persons, so for CGT purposes it is the market value which counts as the "sale" price , not the cash movement

getmore4less

martinpaul1991 wrote: »

What is PET? How would we arrange this, will the solicitor take care of it all? Daughter will be happy to to give us an extra £1k if it keeps things neat and I suspect at a mid market valuation it’s worth 55k max. Sorry to sound a bit confused, but when I hear terms like surveyors (to value), accountants, solicitors, I’m just aware the costs are adding up and it’s me I suspect that will have to bare them and the whole point was to give this to my daughter as cheaply as possible what with the value being so little.

Also, I’m not sure what weight it carries, however this £25k already given to me was a few months ago simply by bank transfer (with a reference of ‘house’). Appreciate now that was maybe not the correct way to do it however it was a bit of a pressing action at the time, and it’s done now.

When daughter is clearing off the remaining mortgage is it best she simply transfers me the monies to do so at my end, then a case of a valuation and the other admin via the solicitor before transferring the deeds over to her?

Work out at what values you would have a CGT bill that's the only unknown.
What did you buy the place for, have you ever lived in it.

If that is higher than your current upper valuation you probably won't need to pay for one just submit the CGT assessment

You are still over thinking, the 25k can be loan, gift or part payment for the house.

PET has been explained, only record needed is a note for your executors.

If your estate is under nil rate band it becomes irrelevant anyway.