Hello and welcome to the site. Thank you for your question.
If you were married couple and living together, then transfer of a share of property would not result in any capital gains tax as transfer of assets between spouses are tax neutral... (the asset/investment is deemed transferred at cost price).
HMRC rule on property income when property is in joint names is and I quote "
If you live together with your spouse or civil partner, we normally treat income from property held in your joint names as if it belonged to you in equal shares and tax each of you on half of the income, regardless of actual ownership."
If you wish this to be taxed on a different basis (known as actual basis) i.e. 60:40; 80:20 etc .etc. then you need to complete a Form17 and also provide evidence in a form of a declaration or deed that your beneficial interests in the property are unequal.
More information on this and a link to download Form 17 is here
I am also providing a link to some guidance notes from ACCA here
The alternative is to transfer a share of the property to your girlfriend and any gain resulting from it would be
- chargeable to CGT
- regarded as a potentially exempt transfer for inheritance tax purposes and the seven years rule would apply. If you survive for 7 years after making the gift, the gift is exempt from IHT irrespective of the value.
She as a recipient of the gift would receive it free of tax as there is no tax on gifts in the UK.
You could then decide what the income sharing ratio is and split rental income accordingly. You could apply the same rationale to the savings account and report interest received on this basis.
I hope this is helpful and answers your question.
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