Transfer into joint names:Tax implication

S

Shilo

Guest
My boyfriend has been living in his mums house for over seven years and we are looking at the best way to transfer it into his name. We think the best possible sollution is to transfer it into joint names (his and his Mums). So if the value is 950,000 we would have to pay stamp duty at 3% of half the value about 28k. As far as i am awear if we continue to live in the house for 6 years is does not effect his inheritance treshold. What i am confused is does his mum have to pay capital gains tax on what the property cost her and what the market value is now and will this be half the value.

The second question is what happens on her death does he have to pay any further stamp duty or inheritance tax?
 
Primary issue:

Is this Mums PPR - main residence? If yes, then no CGT applies. If no, then CGT will apply.

If this is only gift/inheritance then probably no CAT.

Stamp duty will be half of 6% is he is a FTB.

On her death, if they hold as joint tenants, the property will automatically pass to him. At that stage, there may be CAT implications but no stamp duty or CGT.

Like most situations, he should get proper advice. If you are going to be involved and possibly paying money into the house, you should consider your own position.

mf
mf
 
Thanks for your advice mf

No this is not her PPR so i quess CGT will apply. Can you tell me will it be half the value seeing as it is going into joint names. In my case i agree i will have to get some protection but this will have to be an agreement in writing of course between myself and my boyfriend.
 
Bit confused... is your boyfriend living in a rental property that belongs to your mother?

In any event you should get some proper tax advice especially given the figure involved.
 
"Can you tell me will it be half the value seeing as it is going into joint names."

All Mother is disposing of is a half interest - so it will on the half interest only that tax will be calculated.

mf
 
Another thing to note is that stamp duty is halved when selling to a blood relative (consanguinity relief). If mother is selling to son then this applies. Therefore he pays stamp duty at half FTB rate.
 
Newby said:
Bit confused... is your boyfriend living in a rental property that belongs to your mother?

In any event you should get some proper tax advice especially given the figure involved.
Click to expand...

No the property belongs to my boyfriends Mum and we are living there trying to sort out the best way to transfer the property without paying huge taxes. Given the the property was bought over 20 years ago its amounting to alot!
 
You must log in or register to reply here.
Back
Top