Gifting joint ownership to cohabiting partner, not a civil partner. Tax implications?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Gifting joint ownership to cohabiting partner, not a civil partner. Tax implications?

    My heterosexual partner, therefore not civil partner, wants to gift part ownership of our home to me and we would therefore become joint tenants (as co-owners). The property at the moment is owned by three people (my partner, his sister and her husband). It was a large church and has been converted into two properties so the three of them will transfer ownership of one property into his sister and her husband’s name and the other property into his and my name. I am concerned about the financial implication of gifting co-ownership of a property to me. If this makes sense, can anyone advice please. One title number in three names being transferred into two new title numbers; one married couple will own one and my co-habitee partner and I will own the other. My solicitor said there are no tax implications but I really believe he is wrong.

    #2
    I suggest Plan B.

    Unless I have it wrong, you will soon have the right to become a mixed-sex Civil Partnership.

    http://equalcivilpartnerships.org.uk...sent-received/

    That is enabling legislation. The Govt now need to implement the Regulations, which seems to be due by the end of the year.

    Congratulations !

    (I think, and assuming this is England)

    ML
    Refer Mad Regulators to Arkell vs Pressdram.

    Comment


      #3
      If there's no mortgage involved, this is simply a gift.
      There are rules about gifts designed to prevent tax avoidance, but a genuine one-off but generous gift is perfectly fine and would be tax-free.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Thank you both. Yes, I am following the Civil Partnership changes. Also, thank you for reassurance. For some reason, doing this does not sit well with me but I can’t find any reason so will just accept I’m worrying for no reason. Thanks again.

        Comment


          #5
          Originally posted by Phyllis View Post
          Thank you both. Yes, I am following the Civil Partnership changes. Also, thank you for reassurance. For some reason, doing this does not sit well with me but I can’t find any reason so will just accept I’m worrying for no reason. Thanks again.
          It's probably just because it's unusual.
          There aren't many occasions in life where someone is simply given something so valuable, and it feels as if there should be some compensatory downside.

          HMRC have a help line if you want a second opinion, but I think your solicitor sounds correct to me.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            Thank you again. And for the lead on the helpline!

            Comment


              #7
              The 2 types of tax to clarify before making a transfer of property are sdlt ( paid by recipients at registration of title ) and liability to capital gains tax ( paid by the donators ).

              For a transfer of property by gift and no mortgage , there is no sdlt to pay.

              For a gift to a third party , there is liability for cgt

              For a transfer between spouses or between civil partners , there should be no cgt to pay.


              So you should check with HMRC regarding recognition of legislation for mixed sex civil partners as mentioned in Post 2.

              And ask HMRC hotline if a transfer between mixed sex civil partners is treated same as between married spouses. ie. no cgt

              Comment


                #8
                Originally posted by Gordon999 View Post
                The 2 types of tax to clarify before making a transfer of property are sdlt ( paid by recipients at registration of title ) and liability to capital gains tax ( paid by the donators ).

                For a transfer of property by gift and no mortgage , there is no sdlt to pay.

                For a gift to a third party , there is liability for cgt

                For a transfer between spouses or between civil partners , there should be no cgt to pay.


                So you should check with HMRC regarding recognition of legislation for mixed sex civil partners as mentioned in Post 2.

                And ask HMRC hotline if a transfer between mixed sex civil partners is treated same as between married spouses. ie. no cgt
                Although giving a property away is a disposal for CGT purposes I assume in this case the property has been the donors' main residence for the time they have owned it so in this case CGT won't apply.

                Comment


                  #9
                  If it is the main residence of the 3 donors before the whole property is converted into 2 flats , I would expect the council tax bill or electric bill to show 3 donor names ??

                  Comment

                  Latest Activity

                  Collapse

                  • Higher Rate Stamp Duty Landlords
                    GeddyMortgage
                    Hi all,

                    Two questions for you all. One is straight forward, the other maybe not so much. Interested in reading your thoughts/guidance.


                    1) I have 3 rental properties, and one main residence, if I purchase a new home and sell my main residence in the process, despite keeping...
                    26-05-2019, 09:02 AM
                  • Reply to Higher Rate Stamp Duty Landlords
                    Kape65
                    I think as you own 3 other properties you may be expected to pay the premium SDLT on your new purchase main residence or not. I'm not sure converting a residential property to a BTL will incur SDLT as long as the owners remain the same.
                    26-05-2019, 21:05 PM
                  • Car & Car Finance acceptable Landlord expenses
                    GeddyMortgage
                    Hello,

                    I've read various conflicting bits of information on this subject of late. I wonder if anyone on here can help shed some definite light on this for me. I have two questions really,

                    1) As a private landlord, if I were to purchase a car on finance or lease purchase, to...
                    09-04-2019, 08:39 AM
                  • Reply to Car & Car Finance acceptable Landlord expenses
                    GeddyMortgage
                    Great read, thanks all.
                    26-05-2019, 08:51 AM
                  • Deed of trust to Ltd company
                    Vinkris
                    Hello All,

                    I’m new to this site/forum so apologies in advance if this question has been asked before.
                    i own my current property 100% and it’s on a personal mortgage. Now I want to move from the property due to personal reasons and want to let it out. I want to do BTL via company...
                    20-05-2019, 17:11 PM
                  • Reply to Deed of trust to Ltd company
                    Gordon999
                    If you don't want to break the existing mortgage loan, then you certainly cannot move to a new BTL mortgage....
                    24-05-2019, 12:15 PM
                  • Capital gains tax and tax credits
                    alice123
                    hi i have recently sold a rental property and have been working out my tax liability for the GCT which works out at 2,500 tax to pay and im a non tax payer and this just takes me over the threshold - ok for tax credits pruposed do i need to declare the captial gain as its a capital gain and not income...
                    17-05-2019, 14:29 PM
                  • Reply to Capital gains tax and tax credits
                    Gordon999
                    For any owner occupied property ( and never rented out ) , there is no tax to pay on the capital gain.
                    24-05-2019, 12:05 PM
                  • Question Re the 3% BTL SDLT Premium
                    jghomer
                    Hi All

                    Both myself and my wife each have a number of BTL props in our sole names.

                    We also jointly own our marital home.

                    We want to move house to something bigger, and have been advised that the 3% SDLT Penalty will sting us on the new purchase even though it is...
                    22-05-2019, 18:14 PM
                  • Reply to Question Re the 3% BTL SDLT Premium
                    Gordon999
                    If you buy a new home before you have sold the present home, you should expect to pay the extra 3% sdlt.

                    But current rules, you are given 36 months grace period to sell the old home and claim back the extra 3% paid on the new home
                    24-05-2019, 11:59 AM
                  Working...
                  X