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    • Boschfan
    • By Boschfan 9th Apr 18, 8:03 AM
    • 3Posts
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    Boschfan
    Can We Swap Houses?
    • #1
    • 9th Apr 18, 8:03 AM
    Can We Swap Houses? 9th Apr 18 at 8:03 AM
    Hi all,

    My query is can my partner and I swap houses? Background is we are not married, had lived in house 1 for 20+ years which is in partners sole name. 6 years ago I bought house 2 in my sole name which we’ve been living in for the past 2 years leaving house 1 empty. We live off partners pension which he pays tax on. What we are thinking is we swap houses and I will then be the sole owner of house 1 and will rent it out.
    There are no mortgages on either property and are both of equal value.
    Do we just need to fill out forms TR1, AP1 and ID1 to send to Land Registry?
    Any help or advice will be greatly welcomed.
Page 1
    • davidmcn
    • By davidmcn 9th Apr 18, 8:33 AM
    • 7,327 Posts
    • 7,366 Thanks
    davidmcn
    • #2
    • 9th Apr 18, 8:33 AM
    • #2
    • 9th Apr 18, 8:33 AM
    You also need to deal with SDLT / LTT - even if no cash is changing hands, your consideration for each acquisition is the value of the property you're giving in exchange.
    • Boschfan
    • By Boschfan 9th Apr 18, 8:52 AM
    • 3 Posts
    • 0 Thanks
    Boschfan
    • #3
    • 9th Apr 18, 8:52 AM
    • #3
    • 9th Apr 18, 8:52 AM
    Value of each house is approximately £95k. Would we not have to pay stamp duty?
    • davidmcn
    • By davidmcn 9th Apr 18, 9:08 AM
    • 7,327 Posts
    • 7,366 Thanks
    davidmcn
    • #4
    • 9th Apr 18, 9:08 AM
    • #4
    • 9th Apr 18, 9:08 AM
    Value of each house is approximately £95k. Would we not have to pay stamp duty?
    Originally posted by Boschfan
    No, assuming none of you owns other properties - but you'll still need to submit returns.
    • Tom99
    • By Tom99 10th Apr 18, 1:19 AM
    • 1,937 Posts
    • 1,275 Thanks
    Tom99
    • #5
    • 10th Apr 18, 1:19 AM
    • #5
    • 10th Apr 18, 1:19 AM
    There may be some CGT calculation to do on both houses
    • G_M
    • By G_M 10th Apr 18, 5:00 AM
    • 43,794 Posts
    • 51,763 Thanks
    G_M
    • #6
    • 10th Apr 18, 5:00 AM
    • #6
    • 10th Apr 18, 5:00 AM
    Do we just need to fill out forms TR1, AP1 and ID1 to send to Land Registry?
    .
    Originally posted by Boschfan
    That bit is correct. As pointed out

    * SDLT may be due if either of you own another property
    * a SDLT return will need sending to HMRC anyway
    * CGT may be due

    Not my business, but I do wonder why. Could your partner not just let his current property?

    On letting, see

    * New landlords: advice, information & links

    * Letting agents: how should a landlord select or sack?
    • casper_g
    • By casper_g 10th Apr 18, 8:18 AM
    • 1,056 Posts
    • 905 Thanks
    casper_g
    • #7
    • 10th Apr 18, 8:18 AM
    • #7
    • 10th Apr 18, 8:18 AM
    Not my business, but I do wonder why. Could your partner not just let his current property?
    Originally posted by G_M
    Presumably the point is to save income tax: OP and her OH live off OH's pension. He's a taxpayer, but presumably OP isn't so they want to make efficient use of her peraonal allowance.
    • Boschfan
    • By Boschfan 10th Apr 18, 10:40 AM
    • 3 Posts
    • 0 Thanks
    Boschfan
    • #8
    • 10th Apr 18, 10:40 AM
    • #8
    • 10th Apr 18, 10:40 AM
    Thanks for the replies. No neither of us owns any other properties and yes the idea was to use my tax allowance.
    Not really understanding the CGT though, even after reading various threads and the answers given - it just seems to go straight over my head. So we should really work out how much CGT we may have to pay before swapping houses to see if it is actually worth doing?
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