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Any tax to pay when putting wife on deeds?


nozwald

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Hi everyone,

 

We've just moved home and have rented out our old place. I'm about to remortgage to release some equity and was thinking of adding my wife to the deeds.

 

As it was a residential property previously I don't think I am liable to any capital gains tax. Is this correct? Are there any other implications to my wife and I tax wise?

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Hi Noz,

Doesn't matter if you've lived in it or not, there will be no CGT.

Since you are transferring it to your wife, you transfer it at the base cost, so on a no profit or loss basis. If/when you come to sell on, you each pay half the cgt based on the cost you originally incurred (taking into account the principal privat residence relief at this time).

Unsure of the stamp duty implications (suspect none but unsure), but the soliitor doing the transfer will know.

Income tax wise, you should put half the income on each of your tax returns by default. There is an alternate split if you choose, but i would recommend actual advice before doing that.

Hope that helps,

Alex

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  • 3 weeks later...

I was just about to ask the a similar question. Currently the flat my wife and I used to live in is being rented out and I am wondering what I need to do to put 50% of the income from it through my wife's self assessment. Do I just need to get her name on the deeds or is there something I need to do with the Inland Revenue as well. Also does anyone know if she would have accrued some PPR whilst she was living with me in that flat (prior to our marriage). I have asked my accountant but I am fast discovering how useless they are as it has been 3 weeks now and had no firm word (BTW - if anyone can recommend an accountant in west London I'd be grateful).

 

Thanks,

 

Nick

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