House Transfer

[Carlblues7]

My mother wants to transfer one of her houses to my brother and me, which she took ownership as the sole survivor of a joint tenancy deed

The value of the property is contained within her inheritance valuation allowances and therefore has no impact upon ourselves when she passes in the future

The question being that I am going to buy my brother out of the property, paying 50% of current valuation and then spending over £50,000 on remedial and updating work on the house.

I am trying to verify whether a straight transfer with the Land Registry will suffice in this situation. I believe there are 3 forms required to action the overall transfer.

It must be noted that I have lived in this property since 2010 and paid all the bills, rates, council tax, etc.

Are there any issues that I need to be aware of, besides the IHT, which is already covered (such as CGT)?

[PallasAthena]

Your mother may be liable for CGT and she should get advice on this. Nowadays CGT has to be reported and paid to HMRC soon after the transaction (gift) takes place (within 60 days I think). Where a property is given as a gift it is treated for CGT purposes as being a transfer at the open market value on the date of transfer. How you arrive at the MV when the house his being transferred with a "sitting tenant" - you - I don't know and your mother may need to get a professional valuation done. If she declares a MV to HMRC for CGT which is way out of line with the 'vacant possession' value HMRC are likely to challenge it so I'd advise a professional valuation.

Re SDLT, if you are given property as a gift you'll not pay Stamp Duty Land Tax as long as there's no outstanding mortgage on it. https://www.gov.uk/guidance/sdlt-tra...nd-or-property However SDLT might be payable when you buy the other 50% from your brother.

As for Land Registry forms, have you spoken to the LR customer service desk? Although they can't give legal advice they are usually pretty good at telling you what LR forms you need to complete.