Selling flat and putting money into partner's mortgage - tax implications?

DeMulv

I'm looking to sell my flat for around £250,000, which will clear about £100,000 after my mortgage and selling fees are paid off.  This will then go straight into my partner's mortgage to reduce the amount owing on that.

The flat is my sole (main) home, which when sold I'll then move in with my partner, which will then become my main home.  My name will then get added as a percentage of the deeds of my partner's home (and possibly the mortgage).

So my question is - are there any tax implications I should be aware of with what I'm doing?  I don't believe I'm liable for capital gains tax as it's not a second home that I'm selling, but this is from Googling - I'm not a tax expert!

[Deleted User]

There is a common misperception that, if one owns only one home and sells it, there is no exposure to CGT. This is only the case if the house was your main residence throughout.

if this is the case there are no tax implications with what you are doing with respect to capital gains tax. There is also no gift tax in the UK. It is the case that if you were to gift £100000 to your partner, and you are unfortunate enough to die within seven years, this amount would form part of your estate for inheritance tax purposes IF the value of your estate exceeds £325000. I am sure that you can think of a way around this.

getmore4less

The flat is my sole (main) home, which when sold I'll then move in with my partner, which will then become my main home

The OP implies they have been living in the house they are selling if that is the case for the full time  PRR   no CGT 

My name will then get added as a percentage of the deeds of my partner's home (and possibly the mortgage).

They then say they are buying part of their partners house  so probably no gift  involved if they are a getting an equitable share for the cash supplied.

The cash and maybe a share of the mortgage will require a SDLT(or equivilent) assessment as that is consideration.

To go on the deeds without going on the mortgage would require the lenders permission, more likely a change of mortgage.

[Deleted User]

getmore4less said:

The flat is my sole (main) home, which when sold I'll then move in with my partner, which will then become my main home

The OP implies they have been living in the house they are selling if that is the case for the full time  PRR   no CGT 

My name will then get added as a percentage of the deeds of my partner's home (and possibly the mortgage).

They then say they are buying part of their partners house  so probably no gift  involved if they are a getting an equitable share for the cash supplied.

The cash and maybe a share of the mortgage will require a SDLT(or equivilent) assessment as that is consideration.

To go on the deeds without going on the mortgage would require the lenders permission, more likely a change of mortgage.

I was being careful. The op does state firstly that the £100000 will ‘go straight into my partner’s mortgage’ i.e.before the op’s name is added. 

DeMulv

Thank you all, this has confirmed what I was hoping to be the case.  However it's good you've clarified that my name should be added to the deeds before transferring money into the mortgage to avoid gift tax.

I'll also be sure to add myself to the mortgage to avoid a conflict with the deeds.

getmore4less

DeMulv said:

Thank you all, this has confirmed what I was hoping to be the case.  However it's good you've clarified that my name should be added to the deeds before transferring money into the mortgage to avoid gift tax.

I'll also be sure to add myself to the mortgage to avoid a conflict with the deeds.

There is no gift tax.