Any Tax due on adding a Tenants in common?

[VPY]

Hi
I'm wondering if anyone can advice if adding a name to property deeds may incur any tax?
Assuming it's a mortgage free property and we both live in it, is there any difference on tax due between gifting 50% to married spouse and to unmarried partner?


Thank.

[AGoodman]

Can be.

Bear in mind, you are not so much "adding a name" as transferring a 50% share.

If it is your principal home and always has been then it should be covered by 100% PPR so no tax.

If there are gaps in your occupation or it's a BTL/holiday home, you will have to calculate how much of a gain you have made and then how much PPR applies.

Essentially, a gift of 50% is treated as a sale of 50% at the current market value. Your gain is 50% x (current value minus cost of acquisition).

The difference is that there is never any CGT on transfers between cohabiting spouses. The transferee spouse just inherits the original base cost. An unmarried partner does not benefit from any special treatment.