Selling part of flat to my mum without conveyancer.

longdistancemum

https://forums.moneysavingexpert.com/discussion/comment/81968152#Comment_81968152

Mum has always owned her own home and just wants to have that status even if its just on a 50% basis. She also wants my husband to have some money back as he is about to retire. No "inheritance planning" as we just assume the council will ask for the flat to be sold to release her equity. Not enough assets for inheritance tax. Her plan is to move in with us when she needs care.

longdistancemum

Thanks, it is looking complex for something that is otherwise money for old rope conveyancing wise. I will have to look up what AML is as haven't come across that in my research. Oh unless its money laundering.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81970628#Comment_81970628

It is money laundering checks.

Yorkie1

Just thinking out loud more laterally, have you checked whether your husband will incur a Capital Gains Tax liability when he sells part of the flat to your mum? If he's never lived in it, then there will be no private residence relief. Has the value changed much since he bought it (perhaps only a year ago?)?

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/6664656/selling-part-of-flat-to-my-mum-without-conveyancer

I’m assuming you’re in England.

Use form TR1 from the Land Registry for the transfer of equity.

Your MIL will need to complete form SDLT1 and send it to HMRC as well as paying any SDLT due within 14 days of completing the transaction.

Your husband will need to report and pay any CGT on the sale to HMRC within 60 days on the transaction. He’ll need to do this online through gov.uk.

Note that your MIL and husband need to do the above even if the amount due to HMRC is zero.

If you post some figures showing how much your husband purchased the flat for and how much he’s selling a 50% share to his mum for we can work out how much SDLT and CGT is due.

I don’t see the need for AML checks as there no mortgage and no solicitor involved. Presumably your husband trusts that his mum got the money from selling her house and not criminal activities.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81968099#Comment_81968099

maybe @Land_Registry could comment. To me, the comment:

https://forums.moneysavingexpert.com/discussion/comment/81971371#Comment_81971371

Seems to make sense. At the end of the day mother is selling her place and using the money to buy a share of the property she will live in, so there is no deprivation of assets and the path of the money is clear, so no money laundering risks.

longdistancemum

https://forums.moneysavingexpert.com/discussion/comment/81971224#Comment_81971224

I have been looking at that. Doesn't look like any change in value. With the part done diy and my mum's junk in there I suspect its devalued.

Land_Registry

https://forums.moneysavingexpert.com/discussion/comment/81971462#Comment_81971462

There's no 'getting into trouble' with HM Land Registry. We are not involved in the AML and tax issues you refer to. We update the register based on the transfer of ownership and whilst we would always recommend using a conveyancer there is no obligation to do so

The key for us will be the correct submission of the application plus transfer and any identity verification and SDLT payment confirmation

With so many Qs to be answered a conveyancer can help with all of them as they are familiar with such matters and can advise/assist as appropriate and verify identities. Whether you need two, one acting for each party, is again something they can advise you on

mills112

https://forums.moneysavingexpert.com/discussion/comment/81971724#Comment_81971724

that is interesting to hear. just thinking aloud. does this not aid the people who don't want to be caught by the AML checks and making the wrong stamp duty payments to HMRC?

if going through a solicitor you are required to pass rigorous AML checks, then this could be a bypass way to avoid that? also DIY would have a higher occurence of the wrong stamp duty submission?

Land_Registry

https://forums.moneysavingexpert.com/discussion/comment/81971982#Comment_81971982

It's not a question of 'aiding' anyone but more a case of who has what legal responsibilities and where do they arise. HMRC deal with tax and SDLT so you'd need to ask them about wrongful submissions

AML tends to be down to whoever is accepting the monies/involved in any exchange of cash.

A solicitor will run their own AML checks as that's what they are required to do. Likewise a bank. You may want to widen your research re AML and where it is (and is not) required

We deal with and responsible for the legal ownership change