Regifting property

V2001

I was gifted a property by my parent and we lived together in. The time has come for me to move on. It's always been our main residence.

I checked the tenancy and we are joint tenants and at one point we severed the tenancy when we created wills.

If I gift my share of the property back to then so they becomes the sole owner, is there any sdlt implications for any of us. There is no mortgage or money being exchanged between us.

Finally I know 7 years will start for me when I regift back. But will a PET also start for them on receiving the property back. What happens if he dies within 7 years of receiving the property back?

Jeremy535897

There are no SDLT implications of a gift for no consideration of a share in a house. It may improve your SDLT position should you buy a house in the future, depending on what other houses you own.

Your parent's estate will include the full value of the house once you gift it to them. Technically if the earlier property gift to you was a gift with reservation, there would be a potentially exempt transfer by your parent at the point the reservation ceases.

V2001

Thanks Jeremy.
Will the regifting cause any issues with me inheriting the house later says if 7 years pass after I regift back.

Jeremy535897

None I can think of. It all seems a bit inefficient though, multiplying up PETs for the same property.

lr1277

I am a 1/3 owner in a property along with my parents. Now I can't remember where I heard the following, possibly from my accountant.

I mentioned that I would like to gift my share back to my mum. I was told she could not then allow me to receive the property as a beneficiary of her will. Wasn't told the reasons why. I am guessing IHT issues but don't know for certain.

Perhaps get some professional advice in this matter?

V2001

That sounds odd. If that was the case and your the only son for eg who else can the property go to. I'm assuming if its gifted back after 7 years it goes back to how it was and its completely back in your parents estate. They can then leave it to who they want.

lr1277

V2001 said:

That sounds odd. If that was the case and your the only son for eg who else can the property go to. I'm assuming if its gifted back after 7 years it goes back to how it was and its completely back in your parents estate. They can then leave it to who they want.

Like I said, I didn't enquire further as I thought I would leave it till I was in an actual position to make the gift. In my case, I have a brother who could be willed the property. And to be honest I am not minded to take on the property once I have got rid of my share.

If it makes any difference, the property is an investment property hence it is rented out.

I now realise this is at a tangent to the OP's original question, so I will bow out.

getmore4less

V2001 said:

I was gifted a property by my parent and we lived together in. The time has come for me to move on. It's always been our main residence.

I checked the tenancy and we are joint tenants and at one point we severed the tenancy when we created wills.

if that gift was a sensible portion and you shared costs then that would be a PET not GWR
how long ago? Long enough to have timed out?

If I gift my share of the property back to then so they becomes the sole owner, is there any sdlt implications for any of us. There is no mortgage or money being exchanged between us.

Finally I know 7 years will start for me when I regift back. But will a PET also start for them on receiving the property back. What happens if he dies within 7 years of receiving the property back?

I think you have a PET running  they just have the full value in their estate which you could get back with your lingering PET

the gift back helps your SDLT and avoid the future CGT issue but t here may be some interaction with pre owed assets but that seems to get very complicated when it kicks in when doing speculation examples.  

V2001

The property was gifted to me 5 years ago and now I want to gift it back as my long term plans have changed.
I didn't think pre owned assets would be a issue as their is no money being exchanged and plus I won't be living their after

xylophone

The property was gifted to me 5 years ago and now I want to gift it back as my long term plans have changed.

See   https://www.taxinsider.co.uk/transferring-the-family-home-to-family-members-tax-issues

Gifting part of the home.