Put BTL properties in 2 names for tax relief??

jacqhale

Hi, just a quick question. I have 2 BTL flats which I brought 4 and 5 years ago. I wanted to keep them for at least 10 years as I thought that's when the tax tapered off?

Anyway, I paid for the deposits with inheritence and they are in my name but I was wondering as I do plan to sell them eventually would they be better off moved into mine and my husband's name for tax relief when it comes to selling? Does this have to be done a certain number of years before I sell (no plans yet). Is this easy to do and will I have to fill out tax returns differently or can I keep on doing them in my name?
Presumably if we split up dh would have claim to half then???

Thanks!

Pumpkinface_2

I can't think of any tax that would be "tapering off" by not selling your flats for some more years in your situation. So not sure what you are specifically thinking of there.

You can gift a house to a spouse without it triggering any tax event, but as has been discussed on here recently, you should not be doing this to avoid tax and it should not appear that way. You should ask a solicitor to assist with the paperwork if it is something you are not confident handling yourself.

You would need to change how you are reporting your rental income if you gift one of the properties to your husband, as it would then becme his rental income.

I would presume if you split up with your husband you assets would be subject to dividing up no matter whose name they are in.

00ec25

taper relief for CGT purposes was abolished along with the 40% tax rate

CGT is now flat rate 18% from day 1 of purchase irrespective of how long you hold the asset and you do no longer get taper relief/indexation on the cost price if held for a long period