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Where Taxpayers and Advisers Meet

Any Tax applied when I replace my name on my house with my 2 daughters' name (18 Years and 14 years old)

jaswinder1974
Posts:1
Joined:Mon Jan 22, 2018 4:40 pm
Any Tax applied when I replace my name on my house with my 2 daughters' name (18 Years and 14 years old)

Postby jaswinder1974 » Mon Jan 22, 2018 6:18 pm

Hi,

I would like to take my name out from our house in London. Instead of my name, I would like to put my 2 daughters' name (18 Years and 14 years old).
My daughters live with their mum in that house. I am separated, living separately.

Is there any inheritance tax, stamp duty , capital gains etc. I need to consider?

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

Re: Any Tax applied when I replace my name on my house with my 2 daughters' name (18 Years and 14 years old)

Postby RMC » Wed Feb 28, 2018 10:05 am

1. Inheritance tax: If you die within 7 years after the transfer, the value of the gifts could use up a part of your exempt amounts.

2. Stamp Duty: n/a assuming there is no mortgage. Not easy to gift mortgaged property – your are unlikely to get the mortgagee’s permission.

3. CGT: gifts are liable to CGT as if sold at its market value. There are generous exemptions if the house has ever been your principal private residence, see:
https://www.gov.uk/tax-sell-home

Potential problem: When the girls are over 18, they will be able to do with the property as they please. Their mum would be wise to apply for divorce, as this would give her the right to occupation until the girls complete their education, and, possibly, much more than that. Don’t do it unless it was her idea in the first place.

NB: It is not customary in this country to treat women with disregard and disrespect.

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Any Tax applied when I replace my name on my house with my 2 daughters' name (18 Years and 14 years old)

Postby Peter D » Wed Feb 28, 2018 12:59 pm

Your youngest can not own land or property. You need advice on setting up a Trust so find a well versed practitioner. Regards Peter

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

Re: Any Tax applied when I replace my name on my house with my 2 daughters' name (18 Years and 14 years old)

Postby RMC » Wed Feb 28, 2018 8:18 pm

... somebody also well versed in conveyancing.

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

Re: Any Tax applied when I replace my name on my house with my 2 daughters' name (18 Years and 14 years old)

Postby maths » Wed Feb 28, 2018 8:34 pm

Not sure as to the reason you want to remove your name as the registered property owner?

This can be done by simply transferring the property into the name of your 18 year old daughter (a minor cannot hold a legal estate in land) who would contemporaneously execute a declaration of trust under which she would declare she held the property for herself and her sister 50/50m or whatever ratio agreed.


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