Transferring property title to your child

[70proof]

How does one give a property to a child who has now old enough? Does stamp duty have to be paid? Does it constitute a gift for iht purposes so 7year rule apply?

[twokcc]

Not a lawyer but have transferred part ownership a second property to my daughter. Solicitor prepared a dead of trust for the part that she now owns and once signed the deed had to be executed(whatever that means). No stamp duty to pay as given as gift(zero value).

I had to advise HMRC of transfer and provide a capital gain tax calculation -fortunately as only part of house transferred the gain was less than my yearly CGT allowance so zero tax.. Not sure exactly what would be the situation can If the property is rented out your child may have have to pay tax due from renting the property, My daughter working age so has to do a self assessment and pay tax on her share of the rented property

If its your residential home maters are far more complicated and I wouldn't even attempt to advise on this.
And after 7 years ir will be exclude from the value of your estate

Edited by twokcc on Friday 29th May 18:52

RE

Edited by twokcc on Friday 29th May 18:57

[70proof]

Thanks

[wattsm666]

CGT arises even if there are no proceeds - watch this. Based on market value.

[Sir Bagalot]

wattsm666 said:

CGT arises even if there are no proceeds - watch this. Based on market value.

But you can gift a certain % every year.

Easily done as well using standard land registry forms

[Jeremy-75qq8]

As above no stamp duty ( nil value ) and after 7 years out of your estate.

However ... if it is your residential property and You live in it you will need to pay market rent or it will be a gift with reservation - which is not a gift !

This stops people transferring away assets they need to avoid iht.

But if it is a buy to let for example this is fine.

[TwigtheWonderkid]

What happens if you gift your house to a child, who later marries and then divorces. Assume ex son/daughter in law cops for half?

[Sir Bagalot]

TwigtheWonderkid said:

What happens if you gift your house to a child, who later marries and then divorces. Assume ex son/daughter in law cops for half?

Seek legal advice for that one, legal advice you pay for and not some random people on the web.

[Jeremy-75qq8]

TwigtheWonderkid said:

What happens if you gift your house to a child, who later marries and then divorces. Assume ex son/daughter in law cops for half?

A gift is a gift. It is theirs. If you try to argue otherwise then it is a gift with reservation.

The aim is usually ( a) to help people in the property Ladder ( a real gift ) or inheritance tax planning.

If giving away assets for iht they are just that given away. Doing this on the house you live in had problems such as the above, but also back to my last point you will have to pay rent or it is not a gift. The iht forms are very specific in the questions they ask about addresses etc and what happened to properties.

On a personal basis I would mess with most assets but not the house I lived in