Inheritance and gifting

[Richmond]

I am in the process of buying a new house. The house value is £585000. The proceeds coming from sale of a previous house. My only child daughter will be contributing £25000. I am considering holding the house as joint tenants .I am single just over 60 and in good health.
I wish to gift my daughter 50% of the value.
I understand the implications re future marriage/ divorce future bankruptcy.
We intend living in the property together and sharing the bills equally.

1. Would this arrangement be acceptable in terms of the 7 year arrangement potentially inheritance tax exempt rule?
2. If there are larger alterations to the property eg change of kitchen can I pay or do these bills need to be shared equally?
3. Is there an HMRC Gifting tax form that one is required to fill in?
4. I understand there will be the usual stamp duty charge for the purchase of the house. I am assuming there will be no further stamp duty charge for the gifting.
I appreciate rules may change.

[RMC]

1. Giving your daughter 50% share in the property for £25k would be, for IHT purposes, a potentially exempt transfer (PET), which could become taxable by eating into your exemptions should you die within 7 years.
A gift of a smaller share would be a smaller PET.

2. Any larger alterations to the property paid for by you might, again, be partially PETs.

3. No forms to fill until one of you dies.

4. Stamp Duty is charged on consideration paid by your daughter. Up to £125,000 the rate is 0%.

[Richmond]

Thank you for the information. Please can I just clarify my understanding.

The property would be the only home for me and my daughter. I have previously owned a property, which has been sold.

If I pay the full amount £585000 and gift 50% at the time of purchase to my daughter the stamp duty payable is
£19250.
Whereas if my daughter contributes £25000 directly to the property purchase and is gifted 46% (so that we would own 50:50) at the time of purchase. The stamp duty would be £19250 on the property purchase, in addition, my daughter would have to pay £3375 stamp duty on the amount I have gifted.

[RMC]

How did you calculate that?

[bd6759]

If you and your daughter purchase the house together, SDLT is caluclated on £585K.

If you buy it youself and later give half to your daughter, additional SDLT on that transaction will be based on whatever amount she pays for that share. If it is her only house, the first £125K is charged at 0%.

[Richmond]

Many thanks for your responses, I am most grateful.