Buying a property from my parents

[Soled73]

Can you help. my father is keen to hand-over his BTL property to me. it's fully paid for, but what's the best way to go about this?

Can he sell it to be for £1.00? Would this be legal and above board? What would be the tax implications on this?

[Mrs Mug]

From what little I understand, your father would have to pay Capital Gains Tax on the market value of the house, no matter what he sells it to you for.

But wait for a reply from the Tax Experts.

[TaxationPete]

Yes, the father will have a CGT liability on the gain in value minus deductibles like legal fees, SDLT etc, sales and legal fees of disposal and his unucles CG Allowance £9,600 this year. If the property is a gift then you will have to obtain the open market vlue for the calcuation and it will form the base price you the OP's future disposal. You could put the property into a trust and hold over the CGT but with CHT being flat rated at 18% it may be more beneficial to pay it now, I can't see this rate going down no matter who is running the country. Regards Peter

[jeffrey]

Can you help. my father is keen to hand-over his BTL property to me. it's fully paid for, but what's the best way to go about this?

Can he sell it to be for £1.00? Would this be legal and above board? What would be the tax implications on this?
Conveyancing reply only: yes., legal, unless your father become insolvent. Note that there is no time limit for this risk whilst you own; it would however not affect a full-value purchaser from you (unless P is party to an attempt to defraud your father's crediteors and/or is a relative).

[Telometer]

Note also this would be a potentially exempt transfer for IHT purposes.

He may sell it to you for however much he wishes. It is his to sell or give away as he likes!

No SDLT to pay.