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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My partner and i are unmarried. we have two children and own

Customer Question

my partner and i are unmarried. we have two children and own a flat together jointly in London. The home in which we currently live is in my partner's name as he originally bought it with his assets. We are now looking at selling this property and buying a new one and want to put that property into joint names also. Will this incur a tax liability for me as the assets used to buy the new home are still my partners?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

Technically, if your partner sells the property that is in his name alone and he uses that money to buy a new property which he puts into joint names with you, then he will be making a gift to you for Inheritance Tax purposes of half the cash assuming the new property is in joint names as soon as it is bought. However, there would be no immediate tax charge on you or him. So long as your partner lives for seven years after making the gift, it will fall out of his estate for Inheritance Tax purposes.

Take a look here for information on Inheritance Tax taper relief and here for information on Inheritance Tax generally.

As your partner has an interest in two properties, you should check the CGT position. Take a look at HS283 here for information.

I hope this helps but let me know if you have any further questions.