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Where Taxpayers and Advisers Meet

Transfer of property

jayhay
Posts: 17
Joined: Tue Jun 23, 2009 8:46 pm

Transfer of property

Postby jayhay » Thu May 02, 2019 9:55 am

We have a holiday home which is registered in the names of myself, my wife and our two sons
Our sons have reached the stage where they are contemplating purchasing their own homes so do not wish to become liable for the 3% extra stamp duty on the purchase of a second home
They are therefore planning to gift their share to us as their parents

We envisage submitting a TR1 to the land registry which would show the four of us as the present owners, transferring the property to the ownership of my wife and I.
Is this the solution of preference, or is there a more preferable way of achieving this

Our son’s share of the property will be passed to us as a gift so no stamp duty should be involved
Our son’s yearly capital gains exemption will more than cover the modest increase in the value of their share of the property.

temple
Posts: 12
Joined: Wed Aug 12, 2015 11:36 am

Re: Transfer of property

Postby temple » Wed May 08, 2019 3:01 pm

If you submit a TR1 showing a transfer from all four of you to Mum and Dad then that should ensure that the sons will not incur the 3% surcharge when they buy their own property,
But their previous share of the property precludes them from claiming the first time buyer concession, and that a significant loss.

maths
Posts: 7543
Joined: Wed Aug 06, 2008 3:25 pm

Re: Transfer of property

Postby maths » Wed May 08, 2019 3:06 pm

I assume holiday home not mortgaged?


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