How do I transfer property worth 100k to a family member please ?

[Jwpolly]

Hello, can anyone guide me through the steps I would need to take in order to transfer ownership of property worth 100k to a family member whereby no money changes hands please? Is it simple to do without the need for Lawyers etc ? I have looked on the Land Registry website but there are lots of forms to download on there and I'm unsure of exactly which ones I would need. Are there other forms on top of Land Registry forms to fill in? Many Thanks

[GrumpyToSayTheLeast]

I'm sure, if you do this, it will be classed as a gift and will be subject to tax??

Any gifts to family members over 10k are taxable in most circumstances.

Is this an inheritance thing, or to stop someone getting a charge etc over it?

I'm not trying to be nosey, but its difficult to fully answer without a bit more detail.

[honeybee13]

Hello and welcome to CAG. I've moved you to the general legal forum for further advice.

 

As Grumpy says, I think some more information would be useful.

 

My best, HB

[Jwpolly]

I'm sure, if you do this, it will be classed as a gift and will be subject to tax??

Any gifts to family members over 10k are taxable in most circumstances.

Is this an inheritance thing, or to stop someone getting a charge etc over it?

I'm not trying to be nosey, but its difficult to fully answer without a bit more detail.

My understanding of gifts, until I read your reply was that gifts would be subject to a seven year rule that is on a sliding scale. What you are in fact saying that a person cannot under any circumstances give an outright gift of property, or anything else for that matter to someone without paying tax on it. Are you sure what you are saying is correct or a guess?

[honeybee13]

Hello there.

 

From the information you've given so far, you could be looking at a PET for inheritance tax purposes. It would come under the 7-year rule, so could be free of tax after that, provided the same person doesn't make any other PETs.

 

There's information on the government/HMRC website. There are restrictions if the property is given and the donor continues living in it, for example.

 

HB

[panther12]

Can't answer about any tax implications but be aware that if the person giving away the home at some point in the future needs care home, there is no time limit on the local authority investigating the reasons behind the transfer.

[Jwpolly]

Thanks to all replies so far, but I think we may be going off the topic of my original question.

[steampowered]

I imagine you'd need to complete a form TR1. There is a land registry guide here: https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1/guidance-completing-form-tr1-for-the-transfer-of-registered-property.

 

I don't believe you are required to use a solicitor, though obviously you should do if there are any complications.

[honeybee13]

Here's a link to the Land Registry guidance on form TR1, it seems pretty comprehensive.

 

https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1/guidance-completing-form-tr1-for-the-transfer-of-registered-property

 

HB

[BazzaS]

Thanks to all replies so far, but I think we may be going off the topic of my original question.

 

How is it off topic to point out that if it is an outright gift it will be a PET and attract inheritance tax if you die within 7 years?

How is it off topic to point out (potential) legal pitfalls (like it being reversed as a transaction at an undervalue or as a preference) if the gift is to avoid a judgment / insolvency proceedings (even future proceedings)

Don't forget stamp duty land tax : is it a gift to help avoid SDLT?

 

Is a a GWROB (gift with reservation of benefits)?

Does the recipient know of the tax burden they will take on?

 

It is all well and good saying "going off topic", and the simple answer is "TR1, as a deed".

However, that is a gross simplification and it isn't unfair to note:

A) it would be unusual for it to be an altruistic gift, and if it is just an altruistic gift : if you can afford a 100k altruistic gift why can't you stretch to professional advice re: transfer and

B) if it isn't an altruistic gift, all the questions are relevant, as you could be shooting yourself (or the recipient!) in the foot.

[BazzaS]

My understanding of gifts, until I read your reply was that gifts would be subject to a seven year rule that is on a sliding scale. What you are in fact saying that a person cannot under any circumstances give an outright gift of property, or anything else for that matter to someone without paying tax on it. Are you sure what you are saying is correct or a guess?

 

 

You can give a gift without paying inheritance tax if it is a potentially exempt transfer (PET) and if it remains exempt (the donee survives 7 years).IHT is not the only tax to consider, though.

You can give a gift free of tax if it falls within the IHT allowance even if the donee dies within 7 years).

However, there is (as usual) "the rule, the exception to the rule, and the exception to the exception" : just to answer "Form TR1" could leave out a host of relevant issues.

 

What about issues regarding capital gain: are you making a "disposal" (even just a 'deemed disposal') : are you paying the CGT??

[honeybee13]

To add to what BazzaS has said and panther12 hinted at, you might like to check out Deprivation of Capital if that's relevant.

 

HB

[Mr.P]

Having recently completed and submitted the paperwork for an assent and first registration, the forms are not that complicated. if there are any sections that you are not sure about, the Land Registry have an email and phone help line where they can answer many questions. They can not give legal advice, so they are limited in what they can officially say.

 

If the (OP's) property is already registered, then it is simply a case of completing the TR1 and paying the appropriate fee. Should a FR1 (for first registration) be required, then things can get complicated if it is an old property with a potted history of ownership.

[Jwpolly]

Thank you very much for this great information.

I really appreciate all of the time and effort that everyone takes here to answer our questions.