Question Regarding Gifting Half Of Flat to Wife

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

    Question Regarding Gifting Half Of Flat to Wife

    I have a flat which is rented. There is also a mortgage on the property.

    Can I gift half the property to my wife but retain 100% liability for the mortgage? If so, does this mean I would not have to pay Stamp Duty Land Tax?

    #2
    No, HMRC would not entertain a situation where you (the presumed higher taxpayer)
    claim 50% of the income and 100% of the expenses
    and your wife
    claims 50% of the income and no expenses

    Stamp duty is not payable on a gift (regardless of the mortgage or anything else)

    Comment


      #3
      Your mortgage lender wouldn't allow the title transfer (as then they'd be exposed to the full loan on half the property).

      What are you trying to achieve (if it's just a lovely gift for the wife, don't bother to respond!)
      8-)
      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
        Although I think you could have a deed of trust entirely independent of the mortgage. At the end of the day the mortgage company won't care about this (nor do they even have to know about it) - they will still have full coverage for their loan.

        Comment


          #5
          What is the value of 50% of the property ? Before 5th April 2016, SDLT is charged at 2% on property values between £125K and £250K.

          Comment


            #6
            Originally posted by ReddFour
            The reason for the original question was that I am looking to sell the property soon and am looking to minimize Capital Gains Tax.
            You don't want to gift the property, you want to change the ownership using a declaration of trust.
            However, this is going to be tricky to do if you're about to sell the property, because it's an obvious attempt to avoid paying tax.

            That's not necessarily a problem, so see an accountant and take advice.
            But gifting is not going to be a possibility because of your mortgage.
            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

            Latest Activity

            Collapse

            • Any property tax experts you can recommend please?
              by mpppen
              Hello,
              We have a small BTL portolio of five properties. Some are in our personal names and the latter ones in a property company we set up a few years' ago when the tax rules changed.

              I'd really like to find someone who can advise us of the best way of either bringing the personal...
              03-03-2022, 20:00 PM
            • Reply to Any property tax experts you can recommend please?
              by Trevor62
              Thank-you for the link.

              Well my issue is Tax & Assets.

              Firstly, I am in the process of building a house in my side garden, when complete I will own two properties.

              Will I have to pay stamp duty for the new build?

              Because I am an old dad and my...
              19-05-2022, 19:44 PM
            • Reply to Capital Gains Tax dilemma
              by Gordon999
              You have owned the property for 38 years ( 1984 - 2022 ) and lived in the property for 22 Years ( 1984-2006 ) plus 16 years for letting..

              The total capital gain over 38 years is apportioned between "residence period" ( exempt for cgt ) and "letting period" ( liable...
              19-05-2022, 10:07 AM
            • Capital Gains Tax dilemma
              by Ollyn
              Hello

              I am considering whether to sell my house which has been let for some time and need to see how I can best deal with CGT.

              I lived in the property from 1984 until 2006.

              From 2006 it has been occupied by tenants, now vacant and being renovated.

              ...
              18-05-2022, 18:17 PM
            • Reply to Capital Gains Tax dilemma
              by ash72
              You should seek advice from an accountant, or a property tax for tailored advice to your specific circumstances, you may be entitled to some relief if the property at any time was your own principal residence.
              18-05-2022, 21:14 PM
            • Reply to Capital Gains Tax dilemma
              by theartfullodger
              You declare (online) and pay CGT within 60 days of sale. Depending on the numbers I would expect you to pay CGT. What records do you have of applicable costs, etc?

              What you pay will depend on what CGT rules when you sell - v unlikely to be better than today, possibly worse. Covid,...
              18-05-2022, 18:29 PM
            • Reply to Tax Allowance on Rental Income.
              by Gordon999
              The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property.

              If you own a property jointly with others, you’re each eligible for the £1,000 allowance against your share of the gross rental income.

              If your annual gross...
              18-05-2022, 16:47 PM
            • Reply to Tax Allowance on Rental Income.
              by jpkeates
              It's £1,000 each.

              Most landlords don't use this though, because it's rare for income from a rental property to be low enough to qualify,
              18-05-2022, 09:59 AM
            • Tax Allowance on Rental Income.
              by banner257
              Can anyone help please, if a rental property is owned by two people 50 50. Would each owner be allowed to claim tax relief of £1000 each, or will the allowance of £1000 be split 50 50.
              Thanks
              18-05-2022, 08:42 AM
            • Reply to Consent to Let - do we still need to pay tax
              by Madmax86
              Rent is income. All income needs to be declared, regardless of the mortgage you have
              18-05-2022, 08:50 AM
            Working...
            X