Transfer of Property, Raising Capital, Inheritance, Stamp, Capital Gains implications

[atsweed]

This concerns Capital Gains, Income Tax, Stamp Duty and Inheritance. My father owns a £300k property with a £20k mortgage. He needs to release at least an additional £40k for a divorce settlement. Due to his age (62) and low income he can't raise this himself whilst keeping the property. He doesn't want to sell yet. Ideally he wants to stay in the property for 3 - 5 years and then downsize. I was wondering if there was a way to use my 'buying power' to help him out. I earn £55k and earn money from a rental property. However, both my properties have a big mortgage so I'm not in a position to release equity from them. Could we transfer the house to my name and I just let my Dad live in it? I can then raise the money through a mortgage in my name and make the payments in my name? It would be a gift in this instance and we could possibly transfer back into his ownership when he wants to sell and downsize. What are the tax implications of this? Would we be better off keeping it in my name and would I be liable for capital gains? Alternatively, could we split the ownership and I could raise capital from my share? The same questions apply upon selling in 3 to 5 years time. The whole point is so my Dad can benefit from the price rise in the next 3 - 5 years so any tax above that expected profit would make it not worth while. Ideally I wouldn't charge him 'rent' but he would be paying the mortgage. The aim isn't to avoid inheritance but could it be a decent way to do so at the same time? At the same time, I am looking to raise ~£60 for my own property improvements. I can do that on my own but was wondering if there was a way to use this situation to make it cheaper for me? I've advised my dad keeping it is a gamble and there's no certainty the price will rise.

[maths]

On what is effectively a remortgage you will need to appear on the legal title with father.

At the same time as effecting the remortgage and adding your name you and father can execute a declaration of trust under which he keeps 99% of the beneficial interest and you take 1%. This should mean on any future sale (assuming father lives in property) that no CGT charge arises. In addition any SDLT arising on your part is minimised.

[atsweed]

Hi Maths, thanks for that. Would it then be possible to transfer back to my Dad 100% upon selling? It seems like we can avoid CGT and the majority of any SDLT. I assume no inheritance tax as the property remains with him as the 'beneficiary'. What about POAT?