Is stamp duty payable if I transfer property to my children?
Best Answer
No stamp because you are not selling. The way it works is this; if you transfer property (say, your house) to your children and survive the transfer by seven years, it will be free of inheritance tax. Within seven years it is scaled.
However, to prevent everyone transferring property to their children to escape inheritance tax, you must make the gift complete. This means that you have to sever all ties with the property. If, for example, you continued to live in a house you had given them, you would be considered to have made a 'gift with reservations' and the donation is nullified meaning that it is back in your estate for inheritance tax purposes.
Moreover, there will now be capital gains payable when they sell as they would not be able to claim the principle residence exemption. So you/they pay more tax than if you had left it in your name.
