Capital Gains & Rental Tax Advice

pedro789

Hi

Would be grateful for any advice on the following:

I bought a house in May 1999 and moved out in Aug 2011. It was my main residence but I've rented it out since moving. The property is probably worth £80,000 more than when I bought it. Is it true I have 3 years to sell the house after moving out or it is liable for Capital Gains?

I rent two properties and currently pay 40% tax, based on my salary and rental income taking me over threshold. Can I reduce the tax by putting the properties in mine and partner's names jointly?

Thanks for any advice, appreciate it.

Yorkie1

On the CGT question, yes you have 3 years.

Not sure enough about the answer to the IT question - are either of the two rented properties mortgaged?

00ec25

you let 2 properties (if you rented them then it would be you who was paying rent not you who is receiving rent)

by partner do you mean legally married spouse/civil partner? (yes this pedantry does matter)

if your lender allows you to change the ownership then:

a) if you transfer 100% of the ownership to your spouse then obviously they become liable to the income tax. if married AND owned as tenants in common then you will need to do a Form 17 to notify HMRC of this fact, if not legally married then you can nominate any % share you want to , this may not in fact represent the actual ownership portions eg: you own 99% partner owns 1 % but income is nominated 1/99 (it cannot be 0/100)

b) if owned as joint tenants then it MUST be 50/50 in all cases as you cannot alter the ownership portion of a joint tenancy