Capital Gains and BTL

SpeedSouth

Hi All,

Currently we have a property in my wife's name (always has been), she will be a non tax payer from April so for the time being will leave it like this.

However to limit CGT, in a thread in the savings forum someone suggested I add myself to the deeds to avoid some.

Figures at present,
Bought for 152k in 2006
Value now 200k in 2015

As I understand if we sold tomorrow she would be liable for CGT on anything over £11,100 in profit. I assume it's not £11,100 for every year she has owned it.

By adding me is it as simple as adding me to the deeds, and doubling the CGT allowance? Would it matter when this is done? Obviously we don't want to do this when she is a non tax payer.

We are not planning on selling presently but just wonder if adding me to the deeds is something that should be done to allow CGT allowance to accumulate or makes no difference if done the week before the sale?

SpeedSouth

She has probably for about 3 years in total I guess.

I guess the benefits of PRR will reduce the longer we hold the house

purdyoaten

http://www.taxexpert.co.uk/services/taxation-services/property-tax/cgt-on-sale-of-property-with-transfer-into-joint-ownership-2/

I mentioned this quite a while ago - where HMRC challenged an identical scenario with a client of mine. Thankfully, I had informed the client to transfer the property into joint names at least one year before the proposed sale, obtain formal valuations and to keep the relevant documentation. Unfortunately, the return of the client's wife was investigated for this very point (even though she had passed away between the submission date and the enquiry).

So there are HMRC inspectors out there looking at these scenarios.....