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Interesting capital gains tax question

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Good afternoon


I had a question regarding capital gains allowances.


I am a higher tax payer, but my wife is on a lower band.


I am buying a property with which I'd hope in the next few years I'll be able to take out £22000ish (2 peoples CGT allowances).


If the mortgage was placed in my wife's name only (for income tax reasons), and I put my self on the mortgage nearer the selling time ( to get two CGT allowances) would I be subject to paying stamp duty again?


On the other hand, if I placed myself on the mortgage now but owned say 10% of the house, will income tax be divided proportionally 90/10? Would we both then get a full £11000 allowance on CGT.


Accounting is a nightmare. Whatever way I think I have it right the government seem to have found another way to extort me.


Thanks in advance



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Hi Gareth,


Unfortunately i cant completely answer your question however i think you need to be clearer on who owns the property. You are married which means for stamp duty you are classed as a single unit. If you buy the property together and are joint owners on the land registry then your CGT allowance will be £22,000 combined. The fact your wife holds the mortgage shouldn't make a different.


I stand to be corrected on this but this is my view.



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  • 2 weeks later...

Hi Gareth, 


The short answer is that if there is a mortgage on the property then it is possible that SDLT could be due when you change the mortgage from one individuals name into joint names. I would recommend seeking advice on this (which I'm happy to help with) as much more detailed information is needed.


On the CGT allowance point - everyone gets the allowance. But if you only own 10% and your wife owns 90% then the gains on the property are split in the same proportion. However when you say take out 22k - what do you mean? Sell the property or just refinance? If the latter then there is no CGT due. Feel free to contact me at craig@thec3group.co.uk or 01138272172.





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