Transfer of deed - options and tax

Ctemp

I’m looking to determine whether there maybe tax to pay on a deed of transfer
and if a deed of transfer is the best option.

My ex partner wishes to transfer a property in his name only to me, i will take on a new mortgage. This will be for me to remain in with the kids and help his own financial situation. 

How does this work as i am not named in any way or currently associated with the property legally apart from living in it for 5 years. What tax will i need to pay if any and when (is this classed as a gift or is it different as i have children with him.

Many thanks for any advice

SDLT_Geek

Ctemp said:

I’m looking to determine whether there maybe tax to pay on a deed of transfer
and if a deed of transfer is the best option.

My ex partner wishes to transfer a property in his name only to me, i will take on a new mortgage. This will be for me to remain in with the kids and help his own financial situation. 

How does this work as i am not named in any way or currently associated with the property legally apart from living in it for 5 years. What tax will i need to pay if any and when (is this classed as a gift or is it different as i have children with him.

Many thanks for any advice

It will help to have some more information.  Is the property in England? (There are different forms of stamp duty, depending on which country the property is in).

Is there an existing mortgage of his which will need to be paid off?  If so, how much is it?

Are the two of you (or were you) married, or in a formal civil partnership?

You are interested only in tax you might pay, not the capital gains tax he might have to pay?

Ctemp

Hi, thanks for the reply;

Property is Uk

We are not married, were just cohabitating but have three children together

There is a mortgage on property in his name of circa £260’000

I wish to know the tax implications for us both, on either side - total tax/capital gains implications 

Thanks

user1977

Which of the countries within the UK is the property in?

Ctemp

England

Many thanks

Tiglet2

Ctemp said:

I’m looking to determine whether there maybe tax to pay on a deed of transfer
and if a deed of transfer is the best option.

My ex partner wishes to transfer a property in his name only to me, i will take on a new mortgage. This will be for me to remain in with the kids and help his own financial situation. 

How does this work as i am not named in any way or currently associated with the property legally apart from living in it for 5 years. What tax will i need to pay if any and when (is this classed as a gift or is it different as i have children with him.

Many thanks for any advice

As you are not named on the mortgage or the deeds this transaction will be treated as a normal sale and purchase, rather than a transfer of equity.   You will both need separate solicitors acting for each of you and your lenders.  

There may be CGT for your ex partner to pay for the time he has not been living in the property and you may have to pay SDLT, which is dependent upon whether you are a first time buyer, own any other property, have previously owned a property and how much you are buying the property for.

SDLT_Geek

Ctemp said:

Hi, thanks for the reply;

Property is Uk

We are not married, were just cohabitating but have three children together

There is a mortgage on property in his name of circa £260’000

I wish to know the tax implications for us both, on either side - total tax/capital gains implications 

Thanks

Ctemp said:

England

Many thanks

The "chargeable consideration" for stamp duty land tax (SDLT) will be the amount of his debt you pay off, so £260,000, together with anything else you pay him / pay off for him.

As @tiglet2 says, the rate of SDLT will depend on whether you have other property interests, or perhaps are a first time buyer.

SDLT will be for you to pay, as the "purchaser".