Gifting property

scruffs

Apologies this post may be in the appropriate category
Would very much  appreciate some advice please, my wife and I have lived in the same house for some 30 plus years its now our intention to gift to our daughter, and vacate the home . Property has a value of aprox 900k, however when originally purchased for some reason it was not put in our joint names , clearly as the law states my wife is entitled to equal share , but my question is, would this affect the potential tax implications for our daughter should I die before seven years , thank you in advance for advice 
 

Keep_pedalling

An equal share would be the consideration if you divorced but not if you gift as it stands. There would be a much bigger IHT bill if you died within 7 years than it would be due if this was a joint gift so the first step would be to change your ownership to joint. 

What is the plan for you and your daughter? Will she be moving in and you purchasing or renting somewhere else? I ask because there is the potential loss of your residential NRB and CGT for your daughter to consider. 

Brie

And presumably you have sufficient assets so that you won't be dependent on your local authority to pay for any care for you both in coming years. Else this would be considered deprivation of assets.

lr1277

As well as IHT, you should consider if CGT is applicable on the transfer, in that you or you and your wife will have to pay the CGT. 
i think CGT might be applicable but am not sure. Hopefully someone more knowledgeable can advise.

scruffs

Thank you for replies, our daughter moving in the day we move out, we have built new property, and yes we have sufficient funds not to rely on local authority to pay for any future care should the need arise, I was under the impression CGT would not be applicable as it has been our main residence for some 30 plus years , we are also considering putting other properties into a discretionary trust are the any obvious pitfalls to consider , again thanks in advance for any replies ( ADVICE }

km1500

if it's your main home then there will be no CGT to pay

if you gift it to your daughter there will be no stamp duty to pay (I'm assuming there is no mortgage on the house)

as you seem to have sufficient assets elsewhere then the gift will be of no interest to the local authority unless you apply for means tested benefits and run out of funds.

if you survive 7 years then there is no inheritance tax to pay

if you don't survive seven years then obviously the first 500k will be IHT free leaving 400k for IHT purposes. there is taper allowance but make sure you understand how it works. I believe the next IHT threshold review is 2028 so you may well find the allowances go up then anyway but obviously that is speculation

xylophone

In your situation, I would be making an appointment at a firm of solicitors with a partner with expertise in conveyancing and in IHT, wills and trusts before taking any action at all.

https://www.step.org/directory/firms

scruffs

Thanks for all the advice, of course it will be done through solicitors and tax specialist accountants but nice to have feed back first thanks