Do I need a solicitor to change name on house deeds?

sheramber

Yiu thought wrong.

For tax purposes your sibling gifting the property to you is regarded as being ‘sold’ to you at market value, even if no money changes hands.

As it is not her main residence ,your sibling is liable for CGT on the difference between the value of the house when she acquired it and the current market value when she gifts it to you.

There are allowable reliefs / expenses she may be able to deduct.

She must pay any CGT due within 60 days of the transfer.

sheramber

Do you mean transfer it after your sibling has transferred it to you?

EssexHebridean

So the question is - you accept the property transfer from your sibling to yourself, and you subsequently then look to transfer it on to another family member, while still living there yourself?

What would be the reason for doing this? What would be the benefit for the family member? I believe that you would certainly retain a beneficial interest in the property if doing this - particularly as presumably you would need to have something in place to prevent that family member saying "OI, you, OUT!" a few years down the line! (Yes, I know you think they wouldn't, but trust me, it happens!)

Conrad3000

https://forums.moneysavingexpert.com/discussion/comment/82055732#Comment_82055732

In a nutshell, yes.

Conrad3000

https://forums.moneysavingexpert.com/discussion/comment/82055744#Comment_82055744

I appreciate your concern but I just want a simple answer really.

Don't really want to go down the route of possible (negative) family dynamics in the future.

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82055518#Comment_82055518

CGT applies to all properties, the issue is does the owner qualify for relief against that tax liability,

relief is available as private residence relief PRR where the property has been the sole or main home for all (or some) of the ownership period.

where property is transferred between family members, for very obvious reasons, it is not the price paid, it is the value of asset which may give raise to a gain. "market value rule" which may, or may not, have relief offset against it

silvercar

https://forums.moneysavingexpert.com/discussion/comment/82055518#Comment_82055518

Transfers between related properties are deemed to be at market value, precisely to stop people avoiding or reducing tax due by paying under value or not paying anything. As well as to prevent people hiding assets from others eg in divorce or debt cases.

Presumably, the place is actually registered as being owned by your sibling (check Land Registry if it’s been in your family for decades). So any transfer to you would be deemed to be at market value. There would be a deduction in CGT due if she had lived in it as her main residence at any time of ownership. If this applies, posting the approx value now, purchase price, length of ownership and the length of time it’s been her main residence and someone can calculate the likely CGT due.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/82055810#Comment_82055810

I don’t see how that helps your sister with her CGT liability. But you could continue to live in it as owner for at least a few months, then transfer it to someone free of CGT. But that doesn’t negate your sister’s CGT liability.

Conrad3000

https://forums.moneysavingexpert.com/discussion/comment/82056835#Comment_82056835

If the house is in my name and it's my only residence, would there be any charges involved in transferring the property to someone else for free?

And would I be able to do this myself instead of paying an extortionate fee to a solicitor/conveyancer?

sheramber

If you continued to live in it the recipient would become a landlord.

They must comply with landlords responsibilities such as gas safety inspections and certificates, fire safety certificates , electrical safety certificates.

Does the relative want to be a landlord?