Tax Forum :: Free Tax Advice

Hi all,

My query relates to stamp duty primarily with properties valued above the £40,000 stamp duty lower bound.

My brother and I jointly legally own and have a joint mortgage on a property (property A). We have purchased another property (property B) that needs to complete in 20 days.

Property A is both our first property. Ideally we want to transfer property A into my brothers name only (via a gift) so property B can be purchased as my personal primary residence and my first home

Does anyone have any idea how to do this? We are speaking to the lawyers & accountants but wanted to do some of my own research. Some people have suggested the way to do this would be a transfer in beneficiary interest from me to my brother of the 50% I own in flat A - the reason this has been suggested is due to the 20 day completion time, which is not enough to officially take me off the mortgage and the legal deeds through our mortgage provider

Appreciate any help that can be provided from any of you experts!

Best regards,
Daivik

If you are attempting to obtain first time buyer relief for SDLT your suggestion will not work.

I'm no SDLT expert but the transfer of the existing property to your brother will also be subject to SDLT.

There may also be CGT implication of the gift of the existing property is you have not lived in the property as your main residence throughout your period of ownership.