Removal of name in title deeds

_Penny_Dreadful

hgd7 said:

se2020 said:

Unfortunately once you have been an owner you are no longer a first time buyer so you can't use the discounted sdlt rate, Lisa bonus, and so on. 

On the upside, you already own 1/3 of a house so have that £266k asset. 
I expect parents will be happy to purchase your share for whatever it is going to cost you extra in stamp duty rather than let you sell your part to a stranger..

I am not looking to purchase as a first time buyer (as I own a BTL) - simple trying to purchase my own residential, so will have to pay the standard SDLT for a property over £250k. 

My share in my parents property means nothing to me in the sense of ownership - I do not contribute and never have, it simple feels like by putting my name on the deed is costing me £xxxxxx in any future purchase. I was thinking to simply remove my name from the deed at £0 cost to anyone - no money to ever or has exchanged hands. 

Will you be disposing of your BTL before you buy your own home?  If not then it doesn't matter if you're named on the deeds to your parents' home as the higher rate of SDLT will still apply.

What your parents have done is classic DIY estate planning when there was unlikely to be a IHT bill anyway.  Instead they've potentially created tax liabilities for you.  Woo hoo.

If the property is in England or Wales then I believe there is a form you can complete to transfer your share of the property back to your parents.  Maybe @Land_Registry could advise.

SDLT_Geek

_Penny_Dreadful said:

hgd7 said:

se2020 said:

Unfortunately once you have been an owner you are no longer a first time buyer so you can't use the discounted sdlt rate, Lisa bonus, and so on. 

On the upside, you already own 1/3 of a house so have that £266k asset. 
I expect parents will be happy to purchase your share for whatever it is going to cost you extra in stamp duty rather than let you sell your part to a stranger..

I am not looking to purchase as a first time buyer (as I own a BTL) - simple trying to purchase my own residential, so will have to pay the standard SDLT for a property over £250k. 

My share in my parents property means nothing to me in the sense of ownership - I do not contribute and never have, it simple feels like by putting my name on the deed is costing me £xxxxxx in any future purchase. I was thinking to simply remove my name from the deed at £0 cost to anyone - no money to ever or has exchanged hands. 

Will you be disposing of your BTL before you buy your own home?  If not then it doesn't matter if you're named on the deeds to your parents' home as the higher rate of SDLT will still apply.

What your parents have done is classic DIY estate planning when there was unlikely to be a IHT bill anyway.  Instead they've potentially created tax liabilities for you.  Woo hoo.

If the property is in England or Wales then I believe there is a form you can complete to transfer your share of the property back to your parents.  Maybe @Land_Registry could advise.

There is a nuance here with the point I have put in bold. 

It looks as if OP has a 1/3 share in the family home, in which OP has been living as their only or main residence and OP is to dispose of that, and buy a property to live in as OP's only or main residence. 

In that scenario the replacement exception to the 5% SDLT surcharge should apply and it does not matter if OP retains the buy to let property.  (Assuming that OP is buying in England.)

hgd7

SDLT_Geek said:

Keep_pedalling said:

As you have been living there then you will have no CGT liability if you hand back your share to your parents. That also means this was not a gift with reservation of benefit and if they did this over 7 years ago then giving it back should add no complications to their IHT liability. (It gets a little more complicated if it was less than 7 years). 

Tying in this change with the purchase of your new home should avoid the additional SDLT as you will be disposing of your current residence. 

Good points @Keep_pedalling

As the facts trickle out from OP, it seems OP's share in their parents house is potentially the solution to the SDLT problem caused by OP already owning a buy to let property!!

There is no higher rate of SDLT to pay on your residential (even if you own a BTL). Hence why I need to remove my name on my parents home (I live there). 

_Penny_Dreadful

SDLT_Geek said:

_Penny_Dreadful said:

hgd7 said:

se2020 said:

Unfortunately once you have been an owner you are no longer a first time buyer so you can't use the discounted sdlt rate, Lisa bonus, and so on. 

On the upside, you already own 1/3 of a house so have that £266k asset. 
I expect parents will be happy to purchase your share for whatever it is going to cost you extra in stamp duty rather than let you sell your part to a stranger..

I am not looking to purchase as a first time buyer (as I own a BTL) - simple trying to purchase my own residential, so will have to pay the standard SDLT for a property over £250k. 

My share in my parents property means nothing to me in the sense of ownership - I do not contribute and never have, it simple feels like by putting my name on the deed is costing me £xxxxxx in any future purchase. I was thinking to simply remove my name from the deed at £0 cost to anyone - no money to ever or has exchanged hands. 

Will you be disposing of your BTL before you buy your own home?  If not then it doesn't matter if you're named on the deeds to your parents' home as the higher rate of SDLT will still apply.

What your parents have done is classic DIY estate planning when there was unlikely to be a IHT bill anyway.  Instead they've potentially created tax liabilities for you.  Woo hoo.

If the property is in England or Wales then I believe there is a form you can complete to transfer your share of the property back to your parents.  Maybe @Land_Registry could advise.

There is a nuance here with the point I have put in bold. 

It looks as if OP has a 1/3 share in the family home, in which OP has been living as their only or main residence and OP is to dispose of that, and buy a property to live in as OP's only or main residence. 

In that scenario the replacement exception to the 5% SDLT surcharge should apply and it does not matter if OP retains the buy to let property.  (Assuming that OP is buying in England.)

My bad, I hadn't realised this OP was living with their parents.

_Penny_Dreadful

hgd7 said:

SDLT_Geek said:

Keep_pedalling said:

As you have been living there then you will have no CGT liability if you hand back your share to your parents. That also means this was not a gift with reservation of benefit and if they did this over 7 years ago then giving it back should add no complications to their IHT liability. (It gets a little more complicated if it was less than 7 years). 

Tying in this change with the purchase of your new home should avoid the additional SDLT as you will be disposing of your current residence. 

Good points @Keep_pedalling

As the facts trickle out from OP, it seems OP's share in their parents house is potentially the solution to the SDLT problem caused by OP already owning a buy to let property!!

There is no higher rate of SDLT to pay on your residential (even if you own a BTL). Hence why I need to remove my name on my parents home (I live there). 

That's not true.  It doesn't matter why someone is purchasing an additional residential property, if all 4 conditions are met then the higher rate of SDLT is due.  In your case condition D won't be met as you'll be replacing your main residence.  

To avoid paying the higher rate of SDLT at all you'll need to dispose of your share of your parents' home by the time you complete the purchase of your new home.  Otherwise you'll have 3 years from completing your purchase to dispose of your share of your parents' home and then from that date you'll have 12 months to submit a claim to HMRC to have the higher rate (the additional 5%) repaid to you.

poseidon1

hgd7 said:

SDLT_Geek said:

Keep_pedalling said:

As you have been living there then you will have no CGT liability if you hand back your share to your parents. That also means this was not a gift with reservation of benefit and if they did this over 7 years ago then giving it back should add no complications to their IHT liability. (It gets a little more complicated if it was less than 7 years). 

Tying in this change with the purchase of your new home should avoid the additional SDLT as you will be disposing of your current residence. 

Good points @Keep_pedalling

As the facts trickle out from OP, it seems OP's share in their parents house is potentially the solution to the SDLT problem caused by OP already owning a buy to let property!!

There is no higher rate of SDLT to pay on your residential (even if you own a BTL). Hence why I need to remove my name on my parents home (I live there). 

You say you live with your parents, but  past posts ( with your user name ) indicates to the contrary - this post in particular 

https://forums.moneysavingexpert.com/discussion/6163101/cgt-calculations-on-tenants-in-common-with-higher-band-and-lower-band-tax-bracket#latest

If you are sharing your user name with others ( assuming it is yours), it can present a very confusing and misleading picture of your true background and circumstances - this thread for example - 

https://forums.moneysavingexpert.com/discussion/6429160/iht-from-married-couple-parents-to-child#latest

Bit pointless forum contributors trying to assist, if it is not clear exactly who they are talking to.

Land_Registry

Registering land or property with HM Land Registry: Change the registered owner name - GOV.UK - if the three of you are the registered legal owners then the three of you can transfer the whole of the legal title/property to whoever.