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Harris
Harris, Law Specialist
Category: Law
Satisfied Customers: 2778
Experience:  Family Law - Specialist in Divorce, Financial Relief and Children Matters
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I am a woman and own a house - value £150,000. I lived in

Customer Question

I am a woman and own a house - value £150,000. I lived in the house for one year before moving into my boyfriends house - value £600,000, which has been my home for the past nine years. The house I own has been let over this period and is still let.
My parents intend to put me and my brother on the deeds of a holiday home which they own to reduce the inheritance tax liability (assuming they live 7 years). There will be no consideration with this deed change and my share will be worth approx £50,000.
My boyfriend and myself intend to marry shortly and it is his intention that the property (which is dual use -domestic and commercial (farming) will be in our joint names.
We are very concerned that the two changes (above) holiday home and marriage / joint ownership, will result in taxes of one form or the other due to my already owning a home, even though this is let and not my current residence.
Please advise if our worries are valid.
Many thanks
Debbie
Submitted: 1 year ago.
Category: Law
Expert:  Harris replied 1 year ago.

Hi, thank you for your question. I do not see how there will be any tax liabilities for either properties:

1. The holiday home - you and your brother will be added to the title of the property and there is no payment for this transfer of a share of the title - therefore it will be considered a gift. In the event that the property is eventually sold, then there may be Capital Gains Tax liability depending on the use of the property.

2. Once you marry you will obtain matrimonial home rights and you will have a right to occupy the property until divorce. Furthermore, any transfers between husband and wife are not subject to taxation therefore if you were to be added to the title of the matrimonial home you will have no tax liability.

I hope this assists you. If you found this information helpful please provide a positive rating using the stars at the top of this page. I will not be credited for your question without a positive rating. Thank you

Expert:  Harris replied 1 year ago.

Hi, this question remains open. If you found my information provided helpful please could you rate my response positively using the stars at the top of this page as I will not be credited for my response without a positive rating.