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Should we transfer the title before renting out our home???
florence888
Posts: 5 Forumite
Dear fellow Moneysavers,
My husband and I are planning to rent out our home and rent somewhere else. We will wait until we see something we like and will buy another place.
Meanwhile, we need advice on property tax planning before we rent out our home. Our home is under my husband's name (he is high tax payer and I am not working). The net income from rental will be very minimal becasue the rent collected and our mortgage repayment (interest only) would be almost the same. We wouild like to know:
a. If there is any tax benefit to add my name into the title (for future capital gain tax) ?
b. Does it matter if we transfer the title before renting out the property or wait when we want to sell?
Many thanks for your help in advance.
My husband and I are planning to rent out our home and rent somewhere else. We will wait until we see something we like and will buy another place.
Meanwhile, we need advice on property tax planning before we rent out our home. Our home is under my husband's name (he is high tax payer and I am not working). The net income from rental will be very minimal becasue the rent collected and our mortgage repayment (interest only) would be almost the same. We wouild like to know:
a. If there is any tax benefit to add my name into the title (for future capital gain tax) ?
b. Does it matter if we transfer the title before renting out the property or wait when we want to sell?
Many thanks for your help in advance.
0
Comments
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The answer to a) is yes it will be a benefit having both your names on as regards tax. With CGT it will give you two tax-free allowances when you come to sell. With income tax half the profit from renting will be deemed to be yours and if under your personal allowance your share will be tax-free.
b) I don't think it matters when you do it as regards CGT, but sooner rather than later to benefit from the income tax allowances.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
I was just wondering why the rent out your palce and you rent somewhere else?
Will the rental income and responsibilities/fees etc cover the new rent you are paying elsewhere?
Are you moving area far away?
Why not just live in your current home until you find somewhere else you like?
If your house is empty you will be paying mortgage (or is this now paid) and rent on the rental house.
Sorry to be "nosey" but I'm intrigued by the thinking on tis one.
benI beep for Robins - Beep Beep
& Choo Choo for trains!!0 -
As the property is mortgaged you will need their permission.
The process is very simple but the loan company will insist on a solicitor. Enquire about charges.0 -
Thanks for all your replies.
BenL: we move because we need somewhere bigger and we are not able to sell. It costs money and that's why we want to do it carefully.0 -
cool florence888, was just being nosey and intrigued. I saw "you and your husband" and discounted children and more space.
Good Luck.I beep for Robins - Beep Beep
& Choo Choo for trains!!0
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