Stamp Duty on property title amendment

[Darraghd]

A number of years ago I bought my family home. My father in law (FIL) went on the debt and title as my fiance ( now wife) had other mortgages which had a negative impact on the mortgage application. Not bad credit, just repayment capacity as other mortgages were there.

The mortgage debt is in joint names of my FIL and I. The title is also in joint names of myself and my FIL ( tenants in common )

He is now retired and is inheritance planning and it seems our current set up is a problem as there would be a hefty gift tax liabiilty if he were to leave his share to my wife ( even taking inheritance relief into account).

So... we think the best plan is to put the property title in my sole name now. This leaves the full inheritance relief for my wife for other assets in his estate. We have approached the Bank and they have no issue with putting the title on dole name and leaving mortgage as is.

So to my stamp duty question.

If we were to transfer the property would I have to pay full stamp duty as if I was buying it from someone else ? Would I have to pay any stamp duty at all? Would I only have to pay half the stamp duty of a normal sale as I currently own half of the property ?

For mods.... I am not looking for advice. Just what posters think.

Thanks

 

[Gordon Gekko]

What about the gift tax when he transfers it to you?

Yes, there’d be stamp duty based on half of the value.

He could have CGT as well, unless it has always been his home.

There would be credit for any CGT against CAT.

There might be merit in arguing that you’ve always been the beneficial owner of the property (i.e. that he was merely 50% legal owner), although it’s a harder argument to sustain given the bank’s involvement.