Signing over part of btl

cin

Hi,

I have a btl with a 50 ltv mortgage in my sole name.

Would it be possible for me to change the ownership to joint tenants and sign over a percentage of the property up to the capital gains allowance of 11k to my partner ( not married) .

Or would he have to go on the mortgage?.

CLAPTON

cin wrote: »

Hi,

I have a btl with a 50 ltv mortgage in my sole name.

Would it be possible for me to change the ownership to joint tenants and sign over a percentage of the property up to the capital gains allowance of 11k to my partner ( not married) .

Or would he have to go on the mortgage?.

you would need to get the permission of the mortgage company, who would probably require him to be on the mortgage.

cin

So if I paid mortgage off would I be able to sign over 11k capital allowance to him as a percentage of the property and not pay any tax? .

cin

Or would the new 2nd ownership tax that's coming in April stop it being tax free as he already owns another property?.

CLAPTON

cin wrote: »

So if I paid mortgage off would I be able to sign over 11k capital allowance to him as a percentage of the property and not pay any tax? .

if the mortgage is paid off then you can do what you like with the property
there would be two potential taxes
-capital gains
-stamp duty

if you gave away an amount such that your gain was less than than the cgt allowance then thee would be no cgt tax to pay

stamp duty depends upon the value of the transaction and may be affected by the new government second property tax after april