Title Deeds

mcphail

Good evening - advice appreciated.

I have 3 rental properties and they are all mortgage free. They are all in my name, as my husband was a high tax payer, so all rental income is taxed at basic rate tax through my tax return.

Circumstances have changed and from tax year 2020/21, he will no longer be a high tax payer. However, with increased rental income and salary, I am on the verge of going into the higher tax bracket, so we are thinking of putting his name on the title deeds (50/50 share) so that half of the rental income can be split on his tax return.

Does this make sense to do? Are we creating any problems for ourselves by doing this, when we eventually come to sell the properties?

Would we need to do this through a solicitor, or is it easily done direct with land registry?

Thanks for any advice

G_M

It appears to make sense from what you say.

You will need to transfer ownership from your name, into joint names, either as 'Joint Tenants' or 'Tenants In Common'.

This can be done via forms

* TR1
* AP1
* ID1


Since no money will change hands, and no mortgage is involved, SDLT will, I believe, not be due.



https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1

mcphail

Thank you for your reply. I’ve been reading up about it, so just wanted to check I had understood right.

Is it just the transfer fee I would have to pay for each property- there wouldn’t be any other tax due for doing this, would there?

Thanks again

G_M

Ah! Would Capital Gains Tax apply? I suspect so as you would be disposing of an asset. Market value at date of transfer - purchase price (less allowances)

mcphail

I did wonder if CGT would apply, as I had read on another thread that it wastax free if you transferred assets between a married couple. Is this right?

G_M

https://www.gov.uk/capital-gains-tax/gifts

ileven1225

I face a similar situation, see the link below:
https://forums.moneysavingexpert.com/discussion/6088392/gift-a-mortgage-free-property-to-my-house-wife

It sounds like it is not allowed that I still own the 100% of the property and use trust of deed to let my spouse to have 100% rental income, is it correct?

Thanks in advance!

mcphail

Oh my goodness - i'm going round in circles here! Just when I had it all sussed out and was looking at the online videos of completing TR1 etc - I've just discovered that I need to apply to Registers of Scotland, not Land Registry. There does not seem to be any guidance on what forms to fill in, like there is for England. Can anyone help in guidance on what forms I need to fill in? - otherwise, looks like I may have to get it done by a solicitor - thank you