This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Good idea to add son to house deeds?

LTester
Posts:3
Joined:Tue Jan 03, 2017 3:47 pm
Good idea to add son to house deeds?

Postby LTester » Sun Oct 15, 2017 7:58 pm

I am separating from my husband and buying a house for cash with the proceeds of our family home. I am wondering whether it might be a good idea to put my son on the deeds as joint tenant. He is currently a student at University and I don't envisage him being able to buy his own property for many years. If he doesn't actually live with me full time though, might there be any tax implications for him at any point? Should I set up a trust of some sort?
Thank you

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: Good idea to add son to house deeds?

Postby RMC » Mon Oct 16, 2017 9:34 pm

Buying your home jointly with your son not resident there will save Inheritance Tax if you die within 7 years and the property value increases (it usually does not), but you must pay him market rent for living there.
If instead of dying you sell, he may be liable to CGT on his share.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Good idea to add son to house deeds?

Postby bd6759 » Mon Oct 16, 2017 11:41 pm

What do you want to achieve by putting his name on the deeds? The only way he will access any money is by forcing you to sell (which he could have the right to do).

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Good idea to add son to house deeds?

Postby maths » Tue Oct 17, 2017 8:17 pm

Little advantage if any to putting son on deeds (assuming this means he also acquires a beneficial interest in the property).

IHT unlikely to be a serious problem (depending upon value of property) but on a future disposal CGT issues could arise for your son.

Better to put in your name and leave son house in your will.

AnthonyR
Posts:322
Joined:Wed Feb 08, 2017 2:33 pm

Re: Good idea to add son to house deeds?

Postby AnthonyR » Wed Oct 18, 2017 9:51 am

Plus if he owns a share in your home and does decide to buy a property for himself he is likely to be subject to the extra 3% SDLT surcharge.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

LTester
Posts:3
Joined:Tue Jan 03, 2017 3:47 pm

Re: Good idea to add son to house deeds?

Postby LTester » Tue Oct 31, 2017 10:04 am

Thank you all for your comments. They all confirm what I suspected would be the case.


Return to “Property Taxation”