Transfer of assets to spouse

Caption01

In 2016 I bought a flat with money I had been left by my mother.  The money was left to me in my sole name.  When I bought the flat I put my wife's name as another owner so we own 50% of the flat each.  It isn't held 100% in joint names.  What are the tax implications of selling it and who would receive the proceeds of the sale?  Can I receive all of the receipts of sale as the money was mine initially, or have I effectively gifted half of the property to my wife?

lisyloo

I think you mean you are "tennants in common".
Is it your main home? 
As a married couple you are only allowed one home in total.
If it's a home then there's no tax to pay.
If it's not a home then you'll each be subject to capital gains tax.

Half belongs to her but she can gift you the money tax free as your married. So if your in agreement you can do whatever you wish with the money.

Keep_pedalling

If this has been you main residdence then there is no tax liability, if not you are both liable to have a CGT liability on the gain over the purchase price. 

You have no claim on the proceeds of your wife’s share, gifts are absolute and once given there is no going back. 

theartfullodger

You've been renting it out - and declaring to HMRC (both of you# ALL the rent income?  If not renting out, why ?

Bookworm105

Caption01 said:

 or have I effectively gifted half of the property to my wife?

Given you imply it is not 100% Joint Tenant ownership, that can only mean you have in fact created a Tenants in Common ownership structure so you will have had to evidence that using a Deed of Trust.

DoT by definition make her the beneficial owner of whatever % it gives her, and thus she has every legal right to her share of the sales proceeds (and as others point out she is also responsible for her own tax on that 50% share if "you" have been letting the property since then). 

To give more advice needs you to confirm what has happened to the flat since your original purchase: its the marital home? Its a second home? Its been let?

Keep_pedalling

Bookworm105 said:

Caption01 said:

 or have I effectively gifted half of the property to my wife?

Given you imply it is not 100% Joint Tenant ownership, that can only mean you have in fact created a Tenants in Common ownership structure so you will have had to evidence that using a Deed of Trust.

DoT by definition make her the beneficial owner of whatever % it gives her, and thus she has every legal right to her share of the sales proceeds (and as others point out she is also responsible for her own tax on that 50% share if "you" have been letting the property since then). 

To give more advice needs you to confirm what has happened to the flat since your original purchase: its the marital home? It’s a second home? It’s been let?

I don’t think a DoT is needed if the split is 50/50. 

Caption01

Thank you all.  It hasn't been our main home and it hasn't been let out.  One of our children is living there whilst trying to put a deposit together for their own place.  I don't recall creating a Deed of Trust. I simply told the conveyancing solicitor to put both my name and my wife's name on the title to have equal ownership.  We have subsequently set up Trusts connected to our wills which includes this property and our main home.

Olinda99

Keep_pedalling said:

Bookworm105 said:

Caption01 said:

 or have I effectively gifted half of the property to my wife?

Given you imply it is not 100% Joint Tenant ownership, that can only mean you have in fact created a Tenants in Common ownership structure so you will have had to evidence that using a Deed of Trust.

DoT by definition make her the beneficial owner of whatever % it gives her, and thus she has every legal right to her share of the sales proceeds (and as others point out she is also responsible for her own tax on that 50% share if "you" have been letting the property since then). 

To give more advice needs you to confirm what has happened to the flat since your original purchase: its the marital home? It’s a second home? It’s been let?

I don’t think a DoT is needed if the split is 50/50. 

the default if no DOT is 50-50