Swap house with parents? Implications.

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staunton

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Hi
Have property for sale at moment but no signs of shifting however my parents have offered to swap houses with me.
I'll be getting married next year and the move would suit both of us.
Both houses are of similar market value.
Will be putting a lot of money into my parents place however as it is in serious need of renovation and modernisation (c. 80K).
Aside from family issues which should not be a problem could anyone give me an idea of the tax implications of this re Stamp duty, does my marriage affect tax issues etc.
I am in my own PPR for 3 years while my parents have long since cleared their mortgage.
Could this be relatively straightforward, I'm afraid it probably isnt!!!
Haven't agreed yet just thought I'd sound out the AAM crowd first.
Any help would be much appreciated.
Thanks
 
Stamp duty would be calculated on the market value of the properties. Any differences in value between the two properties would be seen as a gift. Marriage affects tax issues in that transfers between spouses are tax exempt.
 
You could use the consanguinity relief in stamp duty if the transfer was between you and your parents. This would mean that any stamp duty payable would be halved because of your relationship. If you get married and then the transfer is between you and your spouse and your parents then you cannot use consanguinity relief because he is not related to them. If both houses are your PPR's then no CGT should be applicable. If you are paying full market value then no CAT should be applicable. So mainly you need to structure it to get stamp duty relief.
 
Thanks for your replies getting hitched next year so pressure is on!
Both properties are worth around 250K each, would consaguinity relief mean both my parents and myself pay half of our respective stamp duty payments?
Is there no provision for them gifting the house to me and vice versa? wishful thinking I know but worth asking.
Seems unfair when its between family and noone is benefitting financially that the govt still get a payment but such is life!
Thanks again.
 
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