Transfer of ownership of a property as a gift to my sister

Thursday123

Hello.  Can anyone help me.  I am thinking of transferring my property to my sister as an investment for her children's future. I will continue to live there.  The property is my main residence.  No money will change hands.  Therefore, where do i stand when it comes to tax implications?   Especially capital gains tax and inheritance tax.
Thank you.

Gavin83

Any reason you can’t just leave it to them in your will?

Owleyes00

Came here to say the same as @Gavin83

TonyMMM

Makes them liable to CGT, removes any first -time buyer opportunities/bonuses they may have, they become your landlord (with the associated legal responsibilities) etc. etc.

Really doesn't seem to achieve anything at all (except problems and issues)......why ?


Put it in your will.

lookstraightahead

Thursday123 said:

Hello.  Can anyone help me.  I am thinking of transferring my property to my sister as an investment for her children's future. I will continue to live there.  The property is my main residence.  No money will change hands.  Therefore, where do i stand when it comes to tax implications?   Especially capital gains tax and inheritance tax.
Thank you.

I'm not sure why you want to do it now. Sorry for asking as I'm sure it isn't, but would this be to do with assets and care home fees?

canaldumidi

lookstraightahead said:

Thursday123 said:

Hello.  Can anyone help me.  I am thinking of transferring my property to my sister as an investment for her children's future. I will continue to live there.  The property is my main residence.  No money will change hands.  Therefore, where do i stand when it comes to tax implications?   Especially capital gains tax and inheritance tax.
Thank you.

I'm not sure why you want to do it now. Sorry for asking as I'm sure it isn't, but would this be to do with assets and care home fees?

As the OP will continue to live there, would it not be a 'Gift With Reservation'? And as such would

a) still be included in means testing for care home fees, and

b) still be included in the Estate for Inheritance Tax?

As I can't see any motivation for the plan other than this erroneous one, and gven all the other negative consequences, writing a will is a much better option.

Keep_pedalling

Won’t help with IHT as it is a gift with reservation of benefits, and if the idea is to make the LA pay for residential care if the OP needs it then that cunning plan will also fail as it is deliberate deprivation of assets.

Handing you home over to someone else also threatens  your long term security should the new owner get divorced, go bankrupt or die. All in all a very foolish thing to do. 

QrizB

Caution - thread from 2021.