You can transfer property between domestic partners and spouses during the relationship or when the relationship has broken down.
What is a Domestic Partner or Spouse?
Domestic Partner means a person whom another person lives with as a couple on a genuine domestic basis (irrespective of gender). A spouse means a person to whom another person is married.
Consideration (Money)
There is no requirement of money to be paid to transfer the property to another person. If the transfer is during a relationship, the consideration will be with natural love and affection or a gift. If the transfer is due to a breakdown of a marriage or partnership, then the consideration would be shown as due to the breakdown of a relationship.
Stamp Duty
If a domestic partner or spouse transfer a property from one to the other (i.e., A to B) or part thereof (i.e., A to A & B), or from both to one domestic partner or spouse (i.e., A & B to B), provided that the property being transferred is the principal place of residence (PPR) of at least one of the partners to whom the property is being transferred, and that person lives in the property for at least 12 months commencing within 12 months of the transfer, then no stamp duty will be payable on the transfer.
The government changed their ruling from 1 July 2017 regarding property transfers between domestic partners and spouses for investment properties regardless of whether the properties are domestic, industrial, or commercial properties. Stamp duty will be payable and calculated on the current market value of the property. The stamp duty payable will be the same duty liability as the purchase of the property. If part of the property is being transferred (i.e., 50% - A to A & B) with one partner remaining on Title and 50% is being transferred to their partner, stamp duty will only be payable on the share being transferred.
Capital Gains Tax
Advice should be sought from your Accountant or similar when parties are transferring commercial or investments properties as Capital Gains Tax may be applicable.
Mortgages
Should the property be affected by a registered mortgage, consent will be needed from the mortgagee to transfer the property or require the discharge of the existing loan and a new loan applied for. This can take considerable time to meet the bank’s requirements etc, so contact your bank to discuss their requirements as early as possible.
The transfer process is simplified if there is no mortgage over the property.
For further information on transfers between spouses or domestic partners please contact a member from our Property Team or send your email to [email protected].
