Changing ownership on property

Thecreative

We would appreciate any advice in this please, I moved in with my wife some 18 years ago and with used some of the money from my sale towards the mortgage we then paid off the mortgage together but my name was never on that nor the deeds. (Approx value 170,000)

Subsequently we bought a small cottage as a second home 4 years ago before the stamp duty hike, as I work for myself and the sellers were in a hurry we got the mortgage in my wife's name only. We have another 12 months on the mortgage. (Approx value 150,000)

The question is that we would both like to either legally own a property each or 1/2 of each on both. We may also wish to rent the original property out in future or possibly sell.

We are rather unclear of the tax implications in either approach and which would be most beneficial, really appreciate any constructive comments.

Thanks

pphillips

Gifts between spouses usually have no tax implications.

If you want to rent out a property it is sometimes more advantageous for ownership to be with the lower earner when it comes to income tax. If you are selling a property then be careful, as buying a replacement property may trigger the higher stamp duty.

00ec25

in technical terms the fact you have already contributed towards the mortgage would mean you had a beneficial ownership in that property irrespective of not being a legal owner


CGT is based on beneficial ownership, not legal ownership


also you need to get up to speed with Form 17 since you are married and are contemplating joint ownership for income tax purposes


https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17