Transfer of equity

biggingerdazza

Situation: I purchased flat in 2001. Then changed mortgage for buy-to-let in 2004 and bought house with now-wife. Wife now only working part-time due to children. I am 40% tax payer. She is not. Costing me a fortune in tax on profit from let property at 40%. Would like to transfer the buy-to-let mortgage into joint names (cost £200 with provider). Would like to transfer asset either 100% to wife or 50/50. Do trust the wife . Tax-wise, is there any reason why it would be better to keep the asset of the flat 50/50 (I assume in this instance we'd have to pay 40% on the 50% and whateverhertaxrateis on the other 50%?) or transfer 100% to wife? Thanks

Can we have situation whereby myself and my wife are on the mortgage, but my wife owns the asset solely? Or do the names on the mortgage have to match the names at the Land Registry?

If we do both have to be on the mortagage AND both be on the land registry can I be 5% owner and my wife 95%, and if we can do this what is the situation with regards to who pays what tax on the profits yearly? Would I pay 40% on my 5% equity? ??

Thanks

fengirl_2

If you transfer 100% of the house to your wife and then you have to take a lower paid job, or have none at all, you would be missing out on the tax free allowance or lower rate band. You would also lose the let property exemption when you come to seel the flat - you wife would not be due this relief as she wont have lived in it during her period of ownership.
The question regarding the mortgage you would need to take up with the mortgage company - this would be down to their policies.

biggingerdazza

What about if I transferred 95% to her and 5% to me for now? Could I then keep the allowance? And what if we did another transfer of assets a year in advance of selling back to me?

TM1976

This issue is being discussed here:

http://forums.moneysavingexpert.com/showthread.html?t=2224767