Tranferring second home to joint names

peterg1965

I have recently bought a second home in my name only, I did this as my wife is older than me and to get the term i needed on the mortgage it was simpler to purchase in my name only.

My intention is to pay this mortgage off within the next 5-6 years, at that point I will let the house out (I currently use it during the week as I work away from home) and use the additional money to supplement my retirement income.

My question is, once i have paid off the mortgage, what is the process to change the property to joint names, or to transfer to my wife's name only? I will be a HRT tax payer in retirement, my wife won't be, so it would make sense change ownership to reduce tax. Does transfer between spouses count as a 'sale' for SDLT purposes, or is this just a case of notifying Land Registry - presumably using a Solicitor?

booksurr

if at the point of transfer....

a) you remain married the there is no Capital Gains Tax implication as transfers between spouses are free of that tax liability

b) the mortgage is paid off meaning there is no exchange of "consideration", then there is no SDLT liability

c) as a HRT you can afford to use a solicitor for advice

d) you will need to do a Form 17 re income tax

peterg1965

booksurr wrote: »

if at the point of transfer....

a) you remain married the there is no Capital Gains Tax implication as transfers between spouses are free of that tax liability

b) the mortgage is paid off meaning there is no transfer of "consideration" then there is no SDLT liability

c) as a HRT you can afford to use a solicitor for advice

d) you will need to do a Form 17 re income tax

Thanks, it was more Income Tax (from rental income) that i was referring to rather than the CGT, but clearly that comes in to play when I eventually sell. Its only a modest house (£92K paid) so i don't envisage making much over the CGT threshold for a single person anyway. Having it in joint names will reduce that risk though.

I will use a solicitor/convenyancer to do the necessary, i didn't mean to imply that i wouldn't be! It was more the consideration over potential SDLT when i added my wife asa joint owner that was of concern.

G_M

You did not ask about Income Tax, but by transferring to your wife, she would be the one declaring the rental income.

SDLT has been answered above, as has CGT.

As there's no mortgage, and this being a moneysaving site, I see no reason for you to use a solicitor for a simple transfer. Complete

* TR1
* AP1
* ID1

and send to the Land Registry