Transfer half property to spouse - CGT on gains since previous transfer?

DragonQ

Hi,

My wife has had a property in her name for a few years; let's say when it was transferred to her it was worth £500k. There is no mortgage on the property. She wants to transfer it to be in both of our names (joint tenants) so we can take a mortgage out on it. She hasn't got the house valued since it was transferred to her name. I know that transfers between married couples are exempt from CGT but if we get the property valued and we find out it's now worth £700k for example, does my wife have to pay CGT on the £200k increase (minus personal allowance) immediately even though the house isn't being sold?

If the answer is yes, could we just put the old value of the property on the AP1 form and "assume" it hasn't changed much to avoid paying any CGT now?

If the answer is "no" and we put £700k as the property value on the AP1 form, and then we sell the house later for say £750k, would CGT be payable on £50k or £250k?

Thanks for any help!

[Deleted User]

Transfers between husband and wife are at ‘No gain no loss’ so no CGT payable as you say. Filling in a AP1 form is not a disposal. Upon actual selling your base cost would be the same as hers I.e. half of £500k in your example. The gain for each of you would be £125k. (375k-250k.)
We assume no private residence relief?

p00hsticks

Assuming that you are actually living together rather than separated, there is no CGT arising from transfer of an assset between spouses. When you eventually come to dispose of it, you will be assumed to have received it at the same value as when your wife originally acquired it.

I can't comment on what value needs to go on the AP1 form - there is a specific Land Registry thread for LR queries over on the Housing board - the rep who monitors it is very helpful, and I suggest you ask there

https://forums.moneysavingexpert.com/discussion/5685941/land-registry-questions#latest