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Swapping houses
Sterlingtimes
Posts: 2,529 Forumite
in Cutting tax
I am substantially older than my wife.
When I die, could my wife "swap" her £700k house for my son's £350k house without immediate tax implications? I am aware that IHT may come into play in due course, but how about stamp duty?
I am thinking that my son would gift his house to my wife, and my wife would gift her house to him. Both houses are mortgage-free. Presumably, each party would reregister with the Land Registry. Both my son and my wife would move to their new homes.
Would my wife retain our combined IHT residential property allowance?
When I die, could my wife "swap" her £700k house for my son's £350k house without immediate tax implications? I am aware that IHT may come into play in due course, but how about stamp duty?
I am thinking that my son would gift his house to my wife, and my wife would gift her house to him. Both houses are mortgage-free. Presumably, each party would reregister with the Land Registry. Both my son and my wife would move to their new homes.
Would my wife retain our combined IHT residential property allowance?
I have osteoarthritis in my hands so I speak my messages into a microphone using Dragon. Some people make "typos" but I often make "speakos".
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Comments
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Stamp duty would be payable on the valuation of each property at the time of exchanging....0
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Stamp duty is not payable as there is no mortgage
https://www.ukpropertyaccountants.co.uk/understanding-stamp-duty-on-gifted-property/
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If the home currently owned jointly? What is the combined net worth of you and your wife.When you say swap is that just ownership or will they move into each others house as well?0
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From OP:Keep_pedalling said:When you say swap is that just ownership or will they move into each others house as well?Sterlingtimes said:Both my son and my wife would move to their new homes.0 -
The difficulty from a stamp duty perspective is that there are not two separate gifts - there is an exchange. Going back decades stamp duty was not chargeable on exchanges of land, but that loophole was closed a very long time ago. I agree with @eskbanker although there is devil in the detail.Sterlingtimes said:I am substantially older than my wife.
When I die, could my wife "swap" her £700k house for my son's £350k house without immediate tax implications? I am aware that IHT may come into play in due course, but how about stamp duty?
I am thinking that my son would gift his house to my wife, and my wife would gift her house to him. Both houses are mortgage-free. Presumably, each party would reregister with the Land Registry. Both my son and my wife would move to their new homes.
Would my wife retain our combined IHT residential property allowance?
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm04020a0 -
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