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JGM, Solicitor
Category: Law
Satisfied Customers: 12195
Experience:  30 years as a practising solicitor.
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I would like to know a legitimate and tax efficient means to

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I would like to know a legitimate and tax efficient means to transfer properties [both primary residences in the United Kingdom] between family members:

I would like to sell my current house [either to my parents to allow them to downsize or on the open market] and take on my parents house as my primary residence.

Is there a legitimate means to complete the transfer and keep SDLT to a minimum?

Could they legitimately gift the property to me and then can I release the equity by raising a mortgage against the property and transferring the funds to them?


Thank you for your question.

An exchange of properties would not be an efficient way of doing this. See the new HMRC rules at

You would be better to sell your house on the open market.

Your parents could gift their house to you which would not incur SDLT. See

If you then elected to raise funds by mortgaging the property then you could do so. That transaction would have to be entirely separate from the gift transfer from your parents.

Please leave a positive response so that I am credited for my time.
Customer: replied 4 years ago.

Thanks, XXXXX XXXXX clarify that last point on raising funds by mortgaging the property. If that was to release equity, the proceeds of which were then transferred to my parents [as a transaction separate from the gift transfer] would that be subject to any tax?

No, it would be a gift of money to your parents. They would not pay tax on it. Your estate might if you were to die within seven years of the gift.
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