House Sale

[Majorcaman]

Can I sell my house to my son for half it`s price?

[jackthehat]

Why would you want to do that?

And, no, probably not.

[THECORBYLOON]

Is there a particular reason for wanting to do that?

[Ryzen]

Yes, but if you do it to mitigate IHT,stamp duty, care costs etc, there may be problems.

[nicebloke1]

If its your house i believe you can sell it for whatever price below the market price, some try to sell above market price.

[Buenchico]

You're free to sell it to anyone at whatever price you like (or even to give it to them for free).

However if, later on, you need to go into a care home then, when your assets are being assessed, the fact that you've effectively given away half the value of the house to your son can be taken into account.  (i.e. it could be seen that you'd deliberately reduced your assets in order to lower, or to avoid paying, your care home fees.  In such a case, the amount that you've 'given away' can still be taken into account when determining what you've got to pay.  There's no time limit for such calculations).

Your entitlement to means-tested state benefits could also be affected by you giving away part of your assets.

Further, if you were to die within 7 years of effectively giving away half the value of the house, some or all of that value could still be taken into account when calculating the amount of Inheritance Tax to be paid from your estate.  (It's on a sliding scale, with the relevant amount getting lower as the 7-year limit approaches).

[Peter Pedant]

yes of course you can - for whatever the price

I note that at least half the posters  are having a try at another question " why do you think I might want to sell..."

but there are benefit and tax implications - Buenchico has covered some of the means tested benefits

Tax wise - the transfer may be deemed to be invalid from a tax point of view if you do not then pay a market rent

CGT may be payable

see

https://www.moneysupermarket.com/mortgages/can-i-sell-my-home-to-family/#:~:text=Tax%20implications%20of%20selling%20below,passes%20away%20within%20seven%20years

( basically I wdnt - but that is not the q you asked)

[Hymie]

From previous web searches of actual house sale prices (as notified to the Land Registry), I have seen examples where properties were sold for around half the going rate – I assumed that they were some sort of arrangement as you are proposing (sold to a family member).