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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10494
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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Hi, How can I give away a house (owned with my partner as tenancy

Customer Question

Hi, How can I give away a house (owned with my partner as tenancy in common ) to a my partner as a gift? any tax on this ?
Submitted: 3 years ago.
Category: Law
Expert:  Aston Lawyer replied 3 years ago.

 

Hi there,

 

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?

 

Kind Regards

AL

Customer: replied 3 years ago.
Hi, thank you for prompt reply. Just because I am leaving the UK soon. What is the procedure I should take? Contact HMRC to pay CGT first or land registry authorities first?
Expert:  Aston Lawyer replied 3 years ago.

 

Hi again,

 

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.

 

Kind Regards

AL

 

Kind Regards

AL

Aston Lawyer and other Law Specialists are ready to help you
Customer: replied 3 years ago.
Thanks, good to hear that. It is very clear now. Nice weekend
Expert:  Aston Lawyer replied 3 years ago.

 

Cheers. Enjoy your weekend!

 

If I have assisted, I would be grateful if you could leave positive feedback.

 

Kind Regards and all the Best.

AL

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