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Posted Wed, 14 Dec 2022 16:03:45 GMT by EMdriver
My father has a property which is under his name. It is a property that he rents out. It is fully owned without mortgage. It is not his main residence. Now, he would like to add my name as join tenant ownership, it is basically a “gift” that I will NOT pay him any money to buy the ownership. It will remain as a BTL property. The property is the only one my father has under his ownership. I have another property under my ownership and it is my main residence. We have some questions as stated below: 1. Is there any stamp duty we have to pay for adding a name to my father's BTL property? 2. If we change this property to join tenant ownership, is there any capital gain tax we have to report to HMRC? And is there any other tax we have to pay to HMRC? 3. After the property become join tenant owned, the rental income will remain 100% collected by my father and I will NOT receive any rental income, in this case, when I submit self assessment for the tax year, if I still need to report any income from this property? Thanks.
Posted Mon, 19 Dec 2022 11:43:38 GMT by HMRC Admin 19

Your father may be subject to Capital Gains Tax on the disposal of the share gifted to you. More guidance can be found here:

Tax when you sell property

You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price when you buy residential property, for example a house or flat.

Stamp Duty Land Tax

If your father is the beneficial owner of the income from the property, then he will need to declare it on his Self Assessment tax return. You would not need to report income from this property as your father is the beneficial owner of the rental income.

Thank you.

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