I am purchasing my first house using a Help to Buy individual savings account (Isa). However, most of the funds for the house purchase are being supplied by my father via a gift worth 97 per cent of the price of the house, although it will be held in my name alone.
My father owns a home, small business and flat above the business premises. He is selling the business and flat, which have a combined value of around £100,000, and only his name is on the deeds of these assets. He also plans to sell his home, which is worth around £90,000, at a later stage but intends to add my name to its deeds in the meantime.
If we do these things, what are the tax consequences? Would I be liable as a first-time buyer for further tax if my name is added to my father's home’s deeds? And, if this is the case, is there a period of time after which my name can be added to my father's home’s deeds without incurring additional tax?
Or what would be the benefits and disadvantages of my father leaving his property to me in his will rather than naming me on the deeds? PB
Stefanie Tremain, partner at Blick Rothenberg, says:
Help to Buy Isas allow you to save up to £200 per month towards the purchase of your first home. It's no longer possible to open a Help to Buy Isa but you can pay into an existing one until November 2029. The government tops up your contributions to it by 25 per cent, up to a maximum bonus of £3,000.