Transferring 50% of house ownership to child

axil23

TheSpectator said:

Does the son want this though and losing any FTB perks in  future.

Indeed, he is ok with this.

To confirm, there are no disadvantages to this method.

He will not be liable to pay Capital Gains Tax on this property when he sells it, despite acquiring it for no value. 

Keep_pedalling

TheSpectator said:

Does the son want this though and losing any FTB perks in  future.

There is no better perk than being gifted a home, especially if you are already living there. 

Marcon

axil23 said:

I own a pair of investment properties and a house. This exceeds the combined inheritance tax allowance of £1 million by approximately £300,000. To mitigate this, I plan to transfer half of the property to my son, which will bring our total assets below the inheritance tax threshold for the time being. Upon downsizing and purchasing my house, I will transfer the remaining 50% of the property, ensuring that my total assets remain below the £1 million cap.

Is this a sound strategy? 

Depends on the value of the property which is your main residence at the time of your death. The value is capped at the lower of £175K x 2 (assuming your late spouse left everything to you, and it sounds as if that's the case), or the actual value of the property.

Keep_pedalling

Marcon said:

axil23 said:

I own a pair of investment properties and a house. This exceeds the combined inheritance tax allowance of £1 million by approximately £300,000. To mitigate this, I plan to transfer half of the property to my son, which will bring our total assets below the inheritance tax threshold for the time being. Upon downsizing and purchasing my house, I will transfer the remaining 50% of the property, ensuring that my total assets remain below the £1 million cap.

Is this a sound strategy? 

Depends on the value of the property which is your main residence at the time of your death. The value is capped at the lower of £175K x 2 (assuming your late spouse left everything to you, and it sounds as if that's the case), or the actual value of the property.

The OP is talking about downsizing so under the downsizing rule the value his current home can be used, so as long as it is worth at least £350k the full RNRB x2 can be claimed regardless of the value of his final residence.