Can I transfer my BTL share to my spouse?

dadu04

We (myself and my spouse) bought a BTL property together with both of our names. I am higher band tax payer and my spouse is home maker. Can I take my name out of the ownership and transfer whole ownership of the property to my spouse? How can I do that and what are the tax implications?

quotememiserable

Yes you can do that. You have to gift her the house though, so that it becomes hers.

gjcody

Is this solely for tax purposes and is the BTL extant?

poseidon1

You will find the recent following thread on the cutting tax forum of specific interest regarding options to achieve your objective ( assuming objective is reducing income tax exposure) -

https://forums.moneysavingexpert.com/discussion/6639598/minimise-cgt-on-property-by-transferring-to-spouse-or-more-hassle-than-its-worth#latest

gjcody

It seems I have been summonsed by she who will not be ignored. Assuming the answer to both my questions were Yes, then this would have been my next reply!

Then your Lender is your first hurdle, they must be satisfied that the mortgage payments can be made, in good times and bad (with no tenants).

I take it you now hold a Joint Tenancy with equal shares? If so, you could changes to Tenants in Common, with unequal shares which favour your wife to the point where the Lender is satisfied. Then for the Land Registry you need to server the current tenancy (Form Sev) and complete a Form A to establish the new tenancy and the restrictions on the Deeds, along with a Form that doesn't spring to mind, but your conveyancer will know it well (poss RX1??)

Using that 'evidence' you can easily and justifiably inform request HMRC of adjust you taxes as necessary, reflecting to new division..

As there is no automatic 'survivorship' for Tenants in Common, you should also amend your Wills.  

dadu04

Thanks for all the helpful guidance.

theartfullodger

Probably easier to just fill in & register a HMRC I7 form to split income from BTL to 1%/99%.  
-- see- 


https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17

No offence but I've been married 3 times.  Clearly relationships never ever go bad, oh no.

Good luck