In 1991 when my father died my mother's solicitor set up a deed of variation which had to be completed within 2 years of my father's death to show me on the title deeds as tenants in common with my mother. My mother passed away 5 years ago and her name was removed from the title deeds with my name remaining and of course the restriction is still in place.
I rent out my mother's property which I have done since she passed away. I would like to know what to do for the best. Should I apply for an interspousal transfer and have my husband added to the title deeds and if so, would he be liable for tax on 50% of the rent etc, or can he be added and not claim any of the rent thereby not having to declare this on any tax return? I am a 20% rate tax payer and complete a tax return each year declaring the rental of the property. My husband is also a 20% rate tax payer.
Alternatively, should I wait until I am ready to sell the property and then do an interspousal transfer in order to have two lots of CGT relief?
If an interspousal transfer is done....would it be as joint tenants or tenants in common?
I'm sorry so many questions to answer!
At present the property my husband and I own are as tenants in common and we are now thinking of changing this to joint tenants as IHT rules have changed since we bought our present property. Is this easy to do, and can we do it ourselves by completing and RX3 Form plus individual ID1 Forms. What other supporting documents are required as supporting evidence to confirm we own all shares in our property without a mortgage or having a creditor with a charging order against any share. Can we write a letter to that effect to give to Land Registry?
We want to make things simple when one of us dies. We are both retired and have two children with grandchildren.
I would appreciate any help anyone can give as it is a minefield out there!
Many thanks
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