Deed query

Snooze2020

Hi All
My mum is about to purchase a property outright following the sale of her previous home. She has been considering future plans and would like to add myself and my bother to the deeds of her new home, which she will live in exclusively. 
Has anyone got any experience of this please? Pros/cons etc. Both my brother and I own our own homes (his jointly with his wife, me on my own) and I'm concerned if there are any tax issues relating to jointly owning another home. None of us claim any benefits currently. 
Thanks so much in advance 

davidmcn

Why does she want to add you to the deeds?

The main initial con is that it will make the purchase an additional property from the point of view of you and your brother, which means the whole price will be subject to the additional rate of SDLT or equivalent. And as it isn't your main home, you'd be liable to Capital Gains Tax on your share.

greatcrested

1) SDLT. The purchase will be liabe to additional 3% as it is your/brother's  2nd property

2) Capital Gains Tax. If/when the property is sold, you and brother will be liable as it is not your main residence

What is the aim? What is she trying to achieve? Is it

3) reduce Inheritance Tax? Won't work as she continues to live there (Gift with Reservation)

4) aid getting Local Authority funding for care costs? Won't work (Deprivation of Assets).

Snooze2020

greatcrested said:

1) SDLT. The purchase will be liabe to additional 3% as it is your/brother's  2nd property

2) Capital Gains Tax. If/when the property is sold, you and brother will be liable as it is not your main residence

What is the aim? What is she trying to achieve? Is it

3) reduce Inheritance Tax? Won't work as she continues to live there (Gift with Reservation)

4) aid getting Local Authority funding for care costs? Won't work (Deprivation of Assets).

Both replies have been great thanks.
 In particular, she has been concerned that her home would be sold should she require care. There is no indication that this would happen at all, let alone in the future (she still works full time). Would this be considered as deprivation of assets regardless of the time between the purchase and the care? 
Inheritance tax isnt an issue. She is just trying to ensure that the house is left to her children and not taken from her essentially. 

Comms69

Snooze2020 said:

greatcrested said:

1) SDLT. The purchase will be liabe to additional 3% as it is your/brother's  2nd property

2) Capital Gains Tax. If/when the property is sold, you and brother will be liable as it is not your main residence

What is the aim? What is she trying to achieve? Is it

3) reduce Inheritance Tax? Won't work as she continues to live there (Gift with Reservation)

4) aid getting Local Authority funding for care costs? Won't work (Deprivation of Assets).

Both replies have been great thanks.
 In particular, she has been concerned that her home would be sold should she require care. There is no indication that this would happen at all, let alone in the future (she still works full time). Would this be considered as deprivation of assets regardless of the time between the purchase and the care? 
Inheritance tax isnt an issue. She is just trying to ensure that the house is left to her children and not taken from her essentially. 

If either of you were to get divorced, this asset would be up for grabs. Ditto bankrupcy.

greatcrested

https://www.ageuk.org.uk/information-advice/care/paying-for-care/