Transfer of ownership without a solicitor

damekaren

When my daughter separated from her partner we (her parents) bought his share of the equity and continued paying 50%of the mortgage and maintenance costs of the house so that she could continue to live in her home. The idea was that this would be an investment when we came to retirement and the property is split 50/50. Should she sell before that point we would take our share of the equity. The mortgage is now long since paid and we are more financially secure so we now want to gift her our 50% share of the property. No financial transfer will take place, just the name on the deeds. Do we need to engage a solicitor or can we do this ourselves?  Will there be any tax implications for us?

Keep_pedalling

You can do the transfer without using a solicitor. Capital gains tax may come into play if the value of the value property has increased significantly since you took part ownership.

canaldumidi

Send forms to the Land Registry:

AP1

TR1

ID1

See https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1

Yes - as Keep_pedalling says and as I assume it's not been your main residence, you will be liable for CGT on the increase in value of your 50% from date you purchased to market value at date of transfer.

Note you have 60 days from transfer to pay HMRC for any CGT due.

See

https://www.gov.uk/capital-gains-tax/what-you-pay-it-on

GDB2222

You can each make £12300 a year capital gain tax free.  You can possibly phase the gift of your 50% share over a number of years, so as to keep within the limit. 

You would be wise to take tax advice on how to minimise the CGT bill, which could be really large, rather than relying on a forum. 

GDB2222

https://www.gov.uk/capital-gains-tax/rates

user1977

damekaren said:

The mortgage is now long since paid 

...and the charge removed from the title?

ikcdab

Although no money will change hands, you are still giving away a valuable asset. The value of this will be subject to The 7 year rule....if you die within 7 years, the value will be counted as part of your estate