SDLT: adding partner to the title deeds

Emily_Joy

Assuming I own a house outright and want to add the OH (we are married) to the title deeds. The OH owns a share (1/3) in his parents house abroad, the property is valued at about £60K, so his share is about £20K. (He doesn't live there and visits them for a week about once a year.) The value of the house I own is about £400K. The questions are:

1. His parents are talking about selling that house and moving elsewhere. If I add him to the title deeds after that house is sold, what will be the tax implications then?

2. What will be the tax implications for the OH if he is added to the title deeds while still owning a share in his parents house?

We tried to look on the gov.uk but got very confused. 

SDLT_Geek

Emily_Joy said:

Assuming I own a house outright and want to add the OH (we are married) to the title deeds. The OH owns a share (1/3) in his parents house abroad, the property is valued at about £60K, so his share is about £20K. (He doesn't live there and visits them for a week about once a year.) The value of the house I own is about £400K. The questions are:

1. His parents are talking about selling that house and moving elsewhere. If I add him to the title deeds after that house is sold, what will be the tax implications then?

2. What will be the tax implications for the OH if he is added to the title deeds while still owning a share in his parents house?

We tried to look on the gov.uk but got very confused. 

Thinking about SDLT:

1. It is perhaps best to start with the “acquisition”.  Your spouse is to acquire a half share in your £400k house?

2.  Next the “chargeable consideration”.  This is a gift?  But there is a mortgage?  If your spouse acquires a half share and the mortgage is £300k then the chargeable consideration is likely to be £150,000.

3.  The rate of tax should be considered. The extra 3% does not apply if you and your spouse are living together.  It does not matter whether your spouse has an interest in another property.

Given that SDLT starts at £250,000 where standard rates apply, it seems unlikely that there will be any SDLT payable.

Emily_Joy

SDLT_Geek said:

Thinking about SDLT:
1. It is perhaps best to start with the “acquisition”.  Your spouse is to acquire a half share in your £400k house?
2.  Next the “chargeable consideration”.  This is a gift?  But there is a mortgage?  If your spouse acquires a half share and the mortgage is £300k then the chargeable consideration is likely to be £150,000.
3.  The rate of tax should be considered. The extra 3% does not apply if you and your spouse are living together.  It does not matter whether your spouse has an interest in another property.
Given that SDLT starts at £250,000 where standard rates apply, it seems unlikely that there will be any SDLT payable.

Yes, my spouse is to acquire a half of the house. This would be a gift. There is no mortgage.

SDLT_Geek

So there is no “chargeable consideration”.  That means there is no need even for a land transaction return.

sheramber

he may be liable for Capital Gains Tax when the parents house is sold.