Gifting to my brother?
10:45 AM, 21st January 2022, 4 years ago
4
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My mother died 5 years ago, and we jointly owned a property. I would very much like to now transfer this property to my other sibling.
My question is would I have to sell it to him, or can I just give it to him as a gift?
I do not want any monetary compensation, just a straight transfer to him.
How long would the process take, how much would it cost, would I need to go to court, could I get the paperwork from the internet and get a solicitor to do the transfer deeds?
Many thanks
Clair
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Member Since August 2017 - Comments: 11
12:09 PM, 21st January 2022, About 4 years ago
Hi,
You can transfer your interest in the property as a gift so long as there is no restriction that you have not mentioned.
Just instruct a solicitor to undertake the transfer.
Member Since December 2019 - Comments: 241
12:19 PM, 21st January 2022, About 4 years ago
I owned some land outright and gifted a half share to my brother.
Obviously I asked him if he wanted it first.
We then completed the paperwork and submitted it to land registry. There was no solicitor involved, and there was no stamp duty to pay as the land was valued under 40K.
If your share of the property is over 40K value even if there is no actual cash changing hands then stamp duty could be payable depending on the stamp duty %rates for second homes in the country the house is (wales and England sometimes have different rate).
if the property has s mortgage then a solicitor would be needed as the mortgage company would need to check that the remaining owner would be able to cover the mortgage
Member Since May 2021 - Comments: 46
3:00 PM, 21st January 2022, About 4 years ago
I hope you’re not planning on dying soon.
HMRC will see the gift to your brother as a potentially exempt transfer and your estate would be liable for IHT on it if you die within 7 yrs of gifting it. Unless the outstanding value to be taxed is less than the nil rate band.
In short speak with a tax planner and/or solicitor.
Member Since November 2017 - Comments: 263
3:18 PM, 21st January 2022, About 4 years ago
As the property came into your sole possession 5 years ago, I would anticipate there has been a significant increase in the value of the property. If so, I suspect that Capital Gains will get involved somewhere.
Hopefully someone wiser than me can clarify the best way to balance the pro’s and con’s between CGT & IHT, inside and outside the 7 year period mentioned elsewhere.