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Capital gains tax
plumb1_2
Posts: 4,643 Forumite
Hi I have one of my buy to let properties in my sole name and thinking of selling it.
I was thinking adding my wife as joint owner, with mortgage provider approval and using Solitors
My question is, if and when my wife is added, is there any time rules in place that we can then both claim cgt relief?
I was thinking adding my wife as joint owner, with mortgage provider approval and using Solitors
My question is, if and when my wife is added, is there any time rules in place that we can then both claim cgt relief?
A thankyou is payment enough .
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No time rules I’m aware of.
have you looked at deed of trust? It’s a lot easier and cheaper than what you’re proposing and achieves the same result for CGT. Think I paid £150 for mine
No one has ever become poor by giving2 -
Hi thanks, can you explain a bit more about deed of trust please.thegentleway said:No time rules I’m aware of.
have you looked at deed of trust? It’s a lot easier and cheaper than what you’re proposing and achieves the same result for CGT. Think I paid £150 for mineA thankyou is payment enough .0 -
“A Deed of Trust in the UK, also known as a Declaration of Trust, is a legally binding document stating the division of ownership of a property.”
No one has ever become poor by giving1 -
Watch out for SDLT! Unlike with CGT, there is no SDLT exemption for transfers between spouses. If the property is mortgaged and your wife takes on half the mortgage, then that is treated as consideration and is chargeable to SDLT (even if no money changes hands for the property itself).1
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SDLT. Is that stamp duty? How would that apply if I want to gift her 50% of the property
just need to know the best way to reduce tax on the property not avoid it.A thankyou is payment enough .0 -
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I don’t think I have to pay SD if I use a DOT and send Hmrc a form 17
as it’s a gift and she won’t be on the mortgage, if I’ve read correctly online.A thankyou is payment enough .0 -
If it is a gift, your wife definitely won't be on the mortgage and there is no change in the rights and liabilities of any party in relation to the debt, then no SDLT would be due. Are you sure your mortgage lender will agree to you giving away half of the property, which is their security for the loan, to your wife without also making her partly liable for the debt?
There is some guidance on SDLT and mortgages here: https://www.fieldtax.com/wp-content/uploads/2020/10/Patrick-Soares-Property-Tax-Bulletin-September-2020.pdf
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