Transferring Property

[poppet2 13]

Can you transfer property to someone if money does not change hands, and when such transfers do take place, are SDLT or any other charges still payable? 

Edited August 17, 2020 by poppet2

[Jeffrey Shaw 90]

1. Yes, a gratuitous Transfer is permissible. But there can be complications if the property:

a. stands mortgaged at the time of the Transfer; or

b. is later sold by the donee- the Insolvency Act 1986 may apply to any Deed of Gift.

 

2. There is no SDLT on a pure gift, but it might be payable on the element of mortgage debt concerned if the property stands mortgaged at the time of the Transfer.

 

3. A gift may sometimes bring it with liability to CGT and can create or increase liability to IHT [Inheritance Tax].

 

4. The usual HMLR registration fees are slightly reduced: Scale 2 [gifts] is lower than Scale 1 [dealings for value].

Edited August 17, 2020 by Jeffrey Shaw

[poppet2 13]

Thank you Jeffrey. 

[Jeffrey Shaw 90]

ALSO: extra complications possible if it's leasehold.

[Sorry- forgot to include this previously]

[poppet2 13]

Well the house is freehold, & worth 200k. The person to whom it will be gifted has no property or savings. Will that person have to pay CGT if they sell in a year or so, as it is their only property? 

Edited August 24, 2020 by poppet2

[Jeffrey Shaw 90]

On 24/08/2020 at 14:10, poppet2 said:

Well the house is freehold, & worth 200k. The person to whom it will be gifted has no property or savings. Will that person have to pay CGT if they sell in a year or so, as it is their only property? 

I cannot say, not being a CGT expert.

Ask instead at https://community.hmrc.gov.uk/search/?logicalNames=&q=capital+gains+tax