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%shares and various taxes when buying as tenants in common

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I am thinking of buying a property with my daughter as tenants in common. I would contribute 70% and she 30%. We want her share to be 80% and mine 20% with a Deed of Trust. She would live in the property and pay all bills.  If we set it up this way would she have to pay Gift Tax or any other other relating to this arrangement? I haven't been able to find any information on this.

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  • Keep_pedalling
    Keep_pedalling Posts: 20,876 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    There is no gift tax in the UK. Assuming you already own you own home then this proposal would, assuming you live in England, will lumber you with an additional 5% SDLT. It seems you are gifting her 50%  and retaining a 20% interest in the property, so a better option would be to purchase it in her own name with her 30% a 50% gift from and you loan her the rest and protect the loan with with a charge on the property.

    The other option is that you just make the gift and for her to obtain a mortgage for the 20%
  • Bookworm105
    Bookworm105 Posts: 2,016 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 6 February at 7:46PM
      If we set it up this way would she have to pay Gift Tax or any other other relating to this arrangement? I haven't been able to find any information on this.
    because there is no such thing as "gift tax" in the UK

    your intention to use a DoT means you will be liable for Capital Gains Tax on 20% of the value of the property when she sells it.
    Note if you are a French citizen and do not live in the UK then you will still have to pay CGT tax anyway 
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