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I really wanted an aswer to the specific question, I have calculated the CGT position and think it's much less than the 54.6k, surely as I've let I get letting relief as well and as we can jointly own we get 2*11k CGT relief. What I want to know is when it is sold can I still get the residence and letting relief, providing that it is back in my name (or two lots if in joint). I am trying to avoid paying Tax on the income as I now as of this month no longer have any interest to offset.
I'm sorry but this is still not what I am asking - I know how to calculate my current CGT exposure and what reliefs I am entitled to (there are others as well that I can obtain that will legitimately take my CGT level to 0). What I need to know is:
If I transfer the property to my wife (given that there are no immediate tax changes for inter-spousal gifts of unencumbered properties) does this change the CGT position for the worse (i.e. no or fewer reliefs would apply)?
If it does change the CGT position for the worse can I transfer the property back in say 10 years time and get the reliefs back? Can I transfer part of the property and get 2*CGT relief and 2*letting relief if these reliefs are per person per property?
Your suggestion re management fees etc doesn't help as you could only legitimately charge a reasonable management fee - say 10% of rent.
I have managed to speak to HMRC and the answer is that reliefs do NOT transfer, even between spouses - the advantage would have been on income tax at 40% as opposed to at 0%. Additionally if I part transfer then the rules imply that this is a transfer at original cost - therefore my wife has a capital gain and can claim her CGT allowance as well as mine (on each part) but the loss of the PRR and letting relief make this unworkable. Thanks for your time but I can't really say that I got useful answers.