Question: What is mine and my daughters’ tax position on transferring my house to them?
What are the tax and other charges incurred if I transfer my rented house in Warrington into both my daughters’ names? I own the house outright.
Arthur Weller replies:
Answer: Since you and your daughters are 'connected persons', this will be deemed to be a transfer at 'market value', even if this is a gift, and your daughters pay you nothing. So if the house is worth more now than it was when you acquired it, there will be capital gains tax. If the transfer is made for no consideration, there will be no stamp duty land tax (SDLT), but in the future your daughters will not have the SDLT first-time buyers relief. If your daughters are under 18, and if (most probably) the house produces more than £100 rental income per annum, you will have to pay income tax on the rental income.