partner buying % of my house

[cheeky_chops]

hi my partner has lived with me for 18 months, we arent married. For the last 14 months she has rented her house out but is selling it (shes owned it for 4 years and previously lived in it 2.5 years) She wants a 50% split in my house that ive owned for 2 1/2 years - she is going to have to pay £200k, £100k off mortgage and give me a £100k cash.

We are just working out some figures. As i understand it, she will be liable for stamp duty on the part she buys of my house? (2% over £125k)
Am i/we liable for CGT or any other nasty gotchas?

cheers!

[Johnnytheboy]

I can't answer your tax question but I would advise getting a solicitor to draw up a document detailing who owns what bit of the house. I have!

[leef44]

There is no CGT if this is your main residential property.

[leef44]

If there is no hurry, you could wait for the new tax year (5th April 2018) when the stamp duty threshold goes up to £300,000 so there is no duty to pay.

[tight fart]

Instead of getting married will you start a limited company instead?

[RacerMDR]

tight fart said:

Instead of getting married will you start a limited company instead?

makes much more sense than an outdated ritual

[mcg_]

leef44 said:

If there is no hurry, you could wait for the new tax year (5th April 2018) when the stamp duty threshold goes up to £300,000 so there is no duty to pay.

FTB only isn't it?

[leef44]

mcg_ said:

leef44 said:

If there is no hurry, you could wait for the new tax year (5th April 2018) when the stamp duty threshold goes up to £300,000 so there is no duty to pay.

FTB only isn't it?

doh good point. OP, ignore my comment.

[cheeky_chops]

RacerMDR said:

tight fart said:

Instead of getting married will you start a limited company instead?

makes much more sense than an outdated ritual

err didnt mention getting married!?!

Thanks for pointers so far - yes we are getting a division of equity drawn up. She is also paying a life insurance policy on my half so if i pop my clogs my kids get my % inheritance and she wont have to sell the house

[oop north]

Watch out for the second home surcharge on stamp duty - if she hasn’t sold her own house before buying share in yours, she should be paying 3% extra (I think that’s the surplus charge but needs to be checked) although I think that can be claimed back if old house sold within a certain period

I don’t think there should be any cgt - but just need to check on her old home. I cannot remember what the exemptions are / don’t know if they have changed but relatively
Short ownership with short period of renting out used to be ok

[JulianPH]

Your partner needs to sell her house as her primary residence to ensure there is no CGT payable by her on the sale. She would then simply be buying 50% of her new primary residence (and paying stamp duty on this purchase).

You will simply be selling 50% of your primary residence so there will be no tax charge on you at all.

[robsdesk]

My (now wife) & I found ourselves in the same situation a few years ago & decided to not do anything for the reasons above, as we knew we were going to move in the near future & go 50/50 at that point (which we've now done). May be worth not doing anything if you see a move coming in the near-ish future, no sense in paying tax for the sake of it & incurring legal costs etc.. assuming you have one I think your mortgage lender will need to be involved too.

[Legacywr]

Don't do it, relationships can so easily go down the pan!

The situation you have currently, with her renting the home out, that she owns, seems ideal to me!

[smckeown]

Im in same situation after 6.5 years and the house is 100% mine. Her currebt place is a fantastic investment and a fallback if things go pear shape. Dont forget its her that could do the dirty and you get double the hassle!

[anonymous-user]

Legacywr said:

Don't do it, relationships can so easily go down the pan!

The situation you have currently, with her renting the home out, that she owns, seems ideal to me!

Totally agree, if you split up you keep your house and she keeps hers. I don't understand why you would want her to own a percentage of your house as it has no benefit to you. If you split up you may well be homeless and it gets very messy.