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What type of professional(s) do I need to change the name on our house?

30 replies

StarlightAssumptionMcKenzie · 01/12/2008 19:19

Please can anyone help? I haven't a clue where to start. I think we should change our house into my name for tax reasons but don't know who to ask about it or who it is that we'd need to get to do it!

TIA

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StarlightAssumptionMcKenzie · 01/12/2008 19:30

Anyone?

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EachPeachPearMum · 01/12/2008 19:36

Maybe your mortgage company would know? They would have to be informed, and do you still have the contact details of the solicitor who did your conveyancy? They may well know what to do.

StarlightAssumptionMcKenzie · 01/12/2008 19:39

Thanks EachPeach! Would they be able to advise us on the tax implications?

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EachPeachPearMum · 01/12/2008 20:08

well- I'm guessing that an accountant would be better placed.
The personal allowance isn't transferrable any more, so are you thinking of inheritance tax? (you aren't that old, surely? )

EachPeachPearMum · 01/12/2008 20:09

Mortgage interest payments aren't offset against tax any more either, are they, so which tax implications are you thinking of?

EachPeachPearMum · 01/12/2008 20:12

Umm, also- would your mortgage company withdraw their offer if it's based on both your income if you change the house to just your name?
Sorry- don';t have any answers- just thinking aloud...

lalalonglegs · 01/12/2008 20:32

A solicitor is the person you need.

StarlightAssumptionMcKenzie · 01/12/2008 20:45

No it's a bit complicated. We don't currently live in our house but rent it out. I have no income. He is a 40%er! He wants free because he is thinking of helping someone out with a property, but wants it in his name too to protect himself iyswim!

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StarlightAssumptionMcKenzie · 01/12/2008 20:46

But we don't know if any of this makes financial sense! Would a solicitor be able to help? Is there a particular type of solicitor that we should be looking for?

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EachPeachPearMum · 01/12/2008 20:53

Well, I know that rental income can be 4,200 (prob gone up by now) per year before you're taxed on it...though I don't know if this is each, or between owners. Are you and DP married?
Is he thinking of capital gains tax implications then?
What do you mean by 'helping someone out' with a proprty? Do you mean he is speculating in a vaguely safe manner, or is he helping his brother get on the property ladder for example?

StarlightAssumptionMcKenzie · 01/12/2008 21:03

Thinking of buying a small place with MY brother for him to live in or let out depending on whether my brother is allowed to live in the flat above a restaurant he is leasing!!!

Could get messy!

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EachPeachPearMum · 01/12/2008 21:13

Yes- it definitely could!
You reall yneed to speak to a solicitor who could advise, and draw up contract proplerly etc.
Are you completely happy for your brother to be exploited this way? At the end of the day, people don't offer to 'help' with property out of the goodness of their heart!
What if your brother never wants to move? What if you urgently need the money out of the investment etc?

lalalonglegs · 01/12/2008 21:14

A solicitor that specialises in conveyancing and property law will probably have a really good idea - my one gives me tax advice.

Quattrocento · 01/12/2008 21:17

Okay so tell me what the possible tax reasons are for wanting to change the house into your name for tax reasons. Because I don't understand what those might be ...

StarlightAssumptionMcKenzie · 01/12/2008 21:21

EachPeach I am more concerned how my DH is being exploited by my brother tbh. I know them both very well!

Quattro See I don't know the tax reasons, that's why I need help. I'm thinking that it might be better for our house to bring ME the rental income as my DH pays 40%!?

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EachPeachPearMum · 01/12/2008 21:22

It has an implication for capital gains when selling, doesn't it? Your main residence is exempt, so presumably DH is thinking if he claims the flat as his residence and house they own now as Starlights, then he will not be liable for CGT.

But surely Quat- you would be the person to know around here?

StarlightAssumptionMcKenzie · 01/12/2008 21:25

I think we just want some advice about who to go to to explore the options, - all of them!

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StarlightAssumptionMcKenzie · 01/12/2008 21:27

My DH's mortgage advisor told him that it would be better for him to continue to pay the mortgage (tis quite small but I don't have an income) and put the house in my name in a trust or something!

I'm not usually so thick about things but I know NOTHING about this!

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EachPeachPearMum · 01/12/2008 21:28

Starlight- as I understand it... if your house (that you currently let) is in your name solely, then the £4250 allowance would be added to your personal allowance, meaning you can have income up to c£10k with no tax liabilities, as I believe you previously stated you have no income. Is this really the case? I don't know about child benefit, but are other incomes such as CTC counted as income for tax purposes?

Currently you share the residential letting allowance with DP/DH as presumably you own your property between you, so you can add £2125 to your personal allowance, and DH adds £2125 to his.

I am assuming that the reason you're asking is because the rental income from your house is more that £4250 per annum?

EachPeachPearMum · 01/12/2008 21:29

A mortgage advisor is unlikely to know enough about tax evasion tbh- you need a property solicitor and an accountant.

StarlightAssumptionMcKenzie · 01/12/2008 21:30

Ooops, sorry no. 'Our' house is actually 'his' house! . He wants to give it to me! (

see why I'm worried about my brother exploiting my DH? - lol)

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Quattrocento · 01/12/2008 21:37

Well I should know, shouldn't I? In fairness my field is corporate tax rather than personal though.

Sorry I hadn't read the whole thread before posting - I thought you actually lived in the house which is why I was baffled ...

There are two aspects to this - the first is the income side and the second is the capital gains side, although they are linked in a curious way.

On the income tax side AFAIK there is nothing to prevent you from transferring the house into your name (this is a no-gain, no-loss transfer for CGT purposes so will be exempt). This will mean that you can utilise your personal allowance against the rental income and if the rental income exceeds your personal allowance than it will be taxed at lower rates than it would be if the house remained in joint names.

There are a lot of non-tax reasons why you and your DH might not want to do that, of course. Basically what you want to achieve is for you to be beneficially entitled to all the income.

The problem comes when/if you want to sell the property. Because if you want to sell the property (apart from other reliefs which I can tell you about if you want) you will only get one CGT "personal" allowance to offset any gain you might make.

For the best advice on this sort of thing you need to find a small firm of accountants who will be able (far more competently than I) to advise you on the issue in the round.

StarlightWonderStarlightBright · 01/12/2008 21:44

Quattro Thank you so much. I have just exactly that around the corner from where I am staying so will pop in or call them tomorrow.

Does the fact that DH and I are likely to be abroad (1 or 2 yr sabatical, family accompanying) further complicate things?

EachPeachPearMum · 01/12/2008 21:47

Sorry Quat -wasn't meaning to be rude... and I know your field is v specialised.... but you're bound to know more than I would on tax

Starlight genuine question- but if you are married why does he have the house not both of you? Surely everything should be owned between you? (I appreciate not everyone lives in my lovely idealised world!)

StarlightWonderStarlightBright · 01/12/2008 21:52

He had the house before I married him. Tis quite simple. We were gonna get it put in joint names but didn't know how to and I figured that now we have two kids I'm fairly safe anyhow!

But now we need to get our finances sorted iyswim!

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