Ask a Law Question, Get an Answer ASAP!
Thanks for your enquiry.
The various tax implications are as follows-
1. There will be no Stamp Duty Land Tax to pay if you are to give away your half share for no consideration.
2. Capital Gains Tax (CGT)- only gifts between married couples or partners in a civil partnership are exempt for CGT. If you therefore transfer your half share, you are deemed to be transferring it at the current market value, and if this value has increased from the date you acquired the property, the gain will be subject to CGT.
3. Inheritance Tax (IHT)- the gift will be treated as a lifetime transfer (called a PET) and if you were to die within 7 years of the gift, the value transferred or a percentage of it, would form part of your Estate when calculating if IHT is payable.
I hope this gives you the overview.
Can ask the reason why you are thinking of transferring your half share?
Thanks for your reply.
You will need to instruct a Conveyancing Solicitor to prepare the necessary Land Registry Transfer Form, transferring the property into your partner's sole name. This document will then be lodged at the Land Registry.
You need only notify HMRC once the Transfer has been completed.
I do apologise but as regards XXXXX XXXXX the property in question is your main place of residence (and hence this is not a second home), you can claim principal private residence relief, which will mean that no CGT is payable!
Sorry for omitting this from my original post.
I hope this assists.
Cheers. Enjoy your weekend!
If I have assisted, I would be grateful if you could leave positive feedback.
Kind Regards and all the Best.