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Harris
Harris, Law Specialist
Category: Law
Satisfied Customers: 2725
Experience:  Family Law - Specialist in Divorce, Financial Relief and Children Matters
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I live in the UK. I own a property outright i.e. the

Resolved Question:

Hi,
I live in the UK. I own a property outright i.e. the mortgage is paid off. I have been married 20 years but my wife is not on the deeds of the house. My property is now worth about £350,000. I am thinking of putting my wife on to the deeds with 50/50 share for no payment so that my estate is brought down and I am not over the £325,000 nil band rate. I would like to know:
1. At the moment if my wife was to pass away would my NBR become £650,000 even though my wife does not own any assets
2. If I was to pass away will my wife have to pay IHT as my property is over the NBR
3. If I put my wife on the deeds will we have to pay any tax now or when we dispose of the property (CGT, SDLT, IHT)?
Regards
Submitted: 1 year ago.
Category: Law
Expert:  Harris replied 1 year ago.

Hi, thank you for your questions, to which I will respond as numbered:

1. Yes, if your wife has no assets and she passes before you, her IHT nil rate band of £325,000 will pass to you therefore increasing your nil rate band to £650,000. However,

2. Your wife will not be liable for IHT if you pass away, even if your estate is over the nil rate band as inheritance between spouse is tax-free

3. As long as the home is the main residence you would not be subject to any form of taxation

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.

Customer: replied 1 year ago.
Hi,I have 2 sons, What would happen if both myself and my wife pass away (wife not on house deed). Would they have to pay IHT as my estate is over £325,000 or would the £650,000 NRB apply? also in the future if my sons sell the property would they be liable for CGT
Customer: replied 1 year ago.
For the above question I mean me and my wife pass away at exactly the same time e.g. car crash.
Expert:  Harris replied 1 year ago.

Thanks. If the property is in your sole name and you both pass away at the same time, then there will be IHT for your beneficiaries to pay on everything above £325,000.

However, you should be aware that from 2017-18 it is proposed that there will be an additional nil-rate band for main residence being passed on death to a direct descendant. This additional band will increase by £25,000 each year until 2020-2021 where it will be £175,000.

In relation to CGT, if your sons do not occupy the property as their main residence then there may be CGT to pay upon its sale.

I hope this further 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.

Harris and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Thanks,If I put my wife on the deeds then it will be better for IHT and I think this would also protect us better in terms of care home costs later on as only half the property is at risk if me or my wife go into care is that correct?Regards

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