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A Transfer of Equity is when someone is added or removed from the title deeds of a property, such as a sole owner adding their husband or wife, a parent adding their son or daughter or where a couple separate. If there is a mortgage on the property the mortgage and associated legal deeds with need to be changed. Sampson Solicitors offer fixed fees in relation to transfers of equities starting from £350 plus VAT and disbursements.
There are potential tax implications when you add or remove someone from the title deeds of a property.
You may have to pay stamp duty when adding or removing someone from the title deeds. This is because anything of monetary value that is given in exchange for the property is referred to as the 'consideration'. This could include a cash transfer or a mortgage.
You may think that by gifting property you are saving yourself tax later on or you are helping out the person you want to make the gift to. There could in fact be Capital Gains Tax consequences as a result of the transfer of land even if no money is changing hands.
Many people think that once land is transferred that this will not form part of their estate for Inheritance Tax purposes. However, the value of land that is gifted can still form part of the value of your estate for Inheritance Tax purposes for seven years after the gift.
Sampson Solicitors can advise you on the potential tax implications of the transfer of equity before you go ahead, so that you know where you stand and you can make a fully informed decision before proceeding.