Selling a house to a relative

[Lord Humongus]

Is it possible to sell a house to my daughter without a mortgage? Or rent it for a period & then she would own it. I'm not sure of the law & proper procedures so just looking for some advice. Thanks

[Countdown]

Yes and yes.

If it’s not your main residence then CGT might apply to you.

If it IS your main residence then potentially IHT might apply.

If you rent it to her then income tax will apply.

[Crumpet]

Countdown said:

Yes and yes.

If it s not your main residence then CGT might apply to you.

If it was at some point the primary residence then the CGT should only apply on the years it wasn’t the primary residence.

There’s also stamp duty, which is payable - I think - as soon as any money at all changes hands. I believe it’s on the market value, even if you paid 60p for it.

Happy to be corrected on it.

[Lord Humongus]

Thanks for the information The house is not my main residence & I think getting a mortgage may be difficult for her so trying to find a way to help her with keeping the costs down

[Noyzboy]

You will be giving yourself the job of permanent repair man. If anything breaks, she will be on the phone to you. Better to sell and give her the money to do her own thing

[SunsetZed]

Noyzboy said:

You will be giving yourself the job of permanent repair man. If anything breaks, she will be on the phone to you. Better to sell and give her the money to do her own thing

Why? You'll still be the permanent repair man just with less knowledge of the house you're repairing!

[Muzzer79]

Noyzboy said:

You will be giving yourself the job of permanent repair man. If anything breaks, she will be on the phone to you.

As I understand it, this is the job description of any father......

[Countdown]

Muzzer79 said:

Noyzboy said:

You will be giving yourself the job of permanent repair man. If anything breaks, she will be on the phone to you.

As I understand it, this is the job description of any father......

Indeed

[Armitage.Shanks]

How does it work if you just give her the house for nothing?

I'm trying to reduce my IHT liability, plus I don't want to sell it as I don't want to pay the CGT on it. I'd rather give it away and hopefully live out another 7+ years but from what I believe I can't get around paying CGT so giving it away costs me money!

Option give it away and my daughter pays the outstanding CGT?

[Terminator X]

Crumpet said:

Countdown said:

Yes and yes.

If it s not your main residence then CGT might apply to you.

If it was at some point the primary residence then the CGT should only apply on the years it wasn t the primary residence.

There s also stamp duty, which is payable - I think - as soon as any money at all changes hands. I believe it s on the market value, even if you paid 60p for it.

Happy to be corrected on it.

Seriously. Shaky ground that surely?

TX.

[Crumpet]

Terminator X said:

Seriously. Shaky ground that surely?

TX.

I stand to be corrected but my understanding is that as a gift it’s zero stamp. As soon as any money changes hands it’s stamp duty on the market value, but you can sell a house for 60p if you want to.

CGT is due whatever you do.

[Wacky Racer]

Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman
Yeah, I'm the taxman

Should five percent appear too small
Be thankful I don't take it all
'Cause I'm the taxman
Yeah, I'm the taxman
I'll tax the street
(If you try to sit, sit) I'll tax your seat
(If you get too cold, cold) I'll tax the heat
(If you take a walk, walk) I'll tax your feet
(Taxman)
'Cause I'm the taxman
Yeah, I'm the taxman

Don't ask me what I want it for
(Ah, ah, Mr. Wilson)
If you don't want to pay some more
(Ah, ah, Mr. Heath)
'Cause I'm the taxman
Yeah, I'm the taxman

Now my advice for those who die (taxman)
Declare the pennies on your eyes (taxman)
'Cause I'm the taxman
Yeah, I'm the taxman
And you're working for no one but me (taxman)



The Beatles.