Can i / should I put income from property in spouses name…but will they then pay cgt if they sell i

DeeSpare

Due to a big change of circumstances my spouse has currently 10k free from their annual tax free allowance. I on the other hand , use mine up. I have a rental property that is just in my name..i bought it years ago, and i receive £6000 income from it a year. I have left it to my other half in my will, and they have always said they would sell it if i die. I know that there will be no cgt payable if its left in a will.
My question is, could i transfer the income from the property to the other half without changing the deeds so they dont have to pay the tax on my death. I have heard of trusts, but maybe a trust would mean they have to pay the cgt?
would be grateful for any advice.
thankyou

Jeremy535897

What you could do if capital gains tax is your main issue is transfer 1% of the property to your spouse, and not submit a form 17, with the result that for capital gains tax you would be taxed on 99% of the gain (or 99% is washed out on your death), but for income tax you are each taxed on 50% of the rent. You need a solicitor to draw up the appropriate documentation. It is more complex if there is a mortgage (and there can be stamp duty issues).

DeeSpare

Thanks Jeremy, that sounds interesting!