Transfer ownership of house to wife

simonfitba

Am I right in thinking if we rent the gifted property out for more than three years then CGT comes into effect?

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4020890

recession

Hi

In a very similar position as OP - anyone know of the procedure to conduct this transfer to spouse name?

Is it best to get a solicitor or can I liaise directly with Land Registry?

Thanks

00ec25

recession wrote: »

Hi

In a very similar position as OP - anyone know of the procedure to conduct this transfer to spouse name?

Is it best to get a solicitor or can I liaise directly with Land Registry?

Thanks

land registry will explain the procedure but cannot give legal advice on what will be the implications of doing such a transfer

if you are confident that you are happy for OH to get a share of the property then adding your OH DIY via LR is relatively simple

ognum

It is an easy transfer provided the property is mortgage free. There are forms you can down load from the land registry site. Cost is less than £100

ognum

simonfitba wrote: »

Am I right in thinking if we rent the gifted property out for more than three years then CGT comes into effect?

Correct, but currently you are unlikely to make a gain that is greater that your allowance!

Make sure the property is valued by a couple of EAs and keep copies of the valuation.

00ec25

simonfitba wrote: »

Am I right in thinking if we rent the gifted property out for more than three years then CGT comes into effect?

correct - at the moment the property is 100% in your name and is 100% exempt as it has always been your main residence and so gets full private residence relief until the date you move out plus the last 3 years of its ownership - so, as you say, no CGT until 3 years after you leave

but returning to the OP, people have missed the fact that you are married... so important extra factors arise
a) IF you both lived together in the property for the entire time you have owned it and
b) you are now married and still both living there

Therefore transfer ownership to your wife means she will inherit your full PPR assuming a) above applies - ie she has continuously lived in it for the entire time you owned it.
If her occupancy is less than full, then her PRR will be limited to her actual occupany and so she would acquire it with a partial CGT liability already in place.

She will "inherit" the property at your original purchase price for CGT purposes and also gets PRR for her length of occupation, even through she was not an actual owner for all of that - there are still some tax advantages to marriage!

simonfitba

My wife has only lived in the property for two years and also still owns a small flat which was her original residence.

However, she was only paying council tax on her flat while she was living with me. Will this confused things for the taxman?

Kynthia

I think once you married you had to have the same principle residence for the purposes of CGT. I'm not sure if you need to declare which one it is if you own more than one property as a couple. If the HMRC aren't sure they will look at where you were registered to vote, where you had bills, where was commutable for your workplaces, where you spent most of your time, etc.

Kynthia

You should probably get some professional advice as you need to look at what profit the property makes and what tax you and your wife would pay, the effect of CGT if you keep it, transfer it ir add your wife as a joint owner.

You may be able to add your wife to the proprty, have a Deed of Trust saying she owns 99% and then fill in a form to the HMRC stating that you will split the propert income according to ownership.