Putting "my" house into both names - what should I know?

[apartridgeinapeartree]

DP, our DCs and I are moving. I have owned the London flat we currently live in for a long time, and have seen the price more than double.

We're moving out of London, and buying a house with the proceeds of the flat, so we'll be living mortgage free.

I want to put DP's name on the new property too. I want to do this as we're not married - (planning to do so but not for some years), and I want him to have the security of his name on the house. I also want him to feel it's his house too.

(I feel I have sound reasons for wanting to do this, which I won't go into right now.)

Putting aside all the "don't do it" arguments (which won't change my mind, honest!) I just wondered if there is anything I need to know from a financial / legal point of view?

If we add his name to the deeds, will we get a surprise tax bill perhaps (capital gains?). We're using a conveyancer who turns out to be pretty useless, and I'm not getting the level of advice I'd like, so I though I'd ask the wisdom of mumsnet!

Does anyone know if we can just do this or is there legal / financial stuff we should be aware of?

Nonnus yes I think our conveyancer is not up to the job. Oh dear, more expense!

Thanks for the suggestions, useful food for thought.

Bilbo. Her DP is receiving a gift worth more than £600 as such he is liable forCGT should he sell that "gift" ie turn it into cash in less than six years after receiving it. Same applied on death.

So Bilbo it has nothing to do with standard CGT but the issue here is a valuable gift.

You learn something every day!

Have you a link re capital gains on gifts please?

skandi - I can't find anything in the HMRC Capital Gains manual about this rule.
(searching via google for six years gift in the CG manual, i.e. site:ite:www.hmrc.gov.uk/manuals/cgmanual/) returns 5 results none of which supports what you say.

I have never heard of a £600 limit for gifts for CGT. Again, have you a link please? There are no hits in the CG manual for £600 gift - using google as above.

site:www.hmrc.gov.uk/manuals/cgmanual/ in google.

OP you really need to speak to a specialist about the tax position. Please do not blame your conveyancer for the lack of advice, conveyancers are not tax specialists, they are conveyancers. In the law firm where I work the conveyancers refer tax queries to the tax specialists in-house. Not all law firms will offer this service(depends on the size of the firm). If you are using a firm of licensed conveyances then they almost certainly will not be qualified to offer this type of advice.

In answer to your tax questions. There is no capital gains tax on the gift from you to your partner as you are effectively giving him cash to buy the new property jointly with you. When you come to sell there is no CGT for either of you if the property is still your main residence at that point.

I'm afraid I don't understand the comment upthread regarding £600. There is a chattels exemption of £6000 but that is not relevant here. As I said your partner will simply own half his own home which can be sold free of CGT.

For inheritance tax purposes you have made a gift of half the value of the new property. Provided you live for at least 7 years from making the gift then no issue. If you die within 7 years then the value of the gift is added back to the value of your estate. Owning the property as joint tenants or tenants in common makes no difference for inheritance tax, the value of your of share is still included in your estate. If you own as joint tenants then your partner will automatically inherit your half share regardless of any will. If you an as tenants in common and no will then your half share will go to your kids and your partner will have to make a claim against your estate - ie take his own kids to court so I would get a will sorted ASAP.

Bear in mind that if you make a will now and then marry you will need to make a new will as marriage will invalidate your old will ( unless will specifically made in contemplation of marriage).

There is loads more I could say on this subject as this is my specialist area but you really need to sit down with someone ASAP and get the advice before you complete.