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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5028
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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In regards ***** ***** can i give a beneficial interest to my wife

Resolved Question:

in regards ***** ***** can i give a beneficial interest to my wife when i buy property in my name to renovate and sell on.
The property is bought in my name due to my credit history and her poor history. we renovate the property together and sell.
Because the property is in my name but we as husband and wife we do the property together can we not also give her half the profits and ulitise her allowances. thanks
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Your question is
"the property is in my name but we as husband and wife we do the property together can we not also give her half the profits and ulitise her allowances."

If the property is in your name then any profit from sale of it would be regarded as your profit and you would taxed on it. HMRC would not allow the profit to be split before taxation.

What you should try to do is to gift your half of the property to your wife as transfer of assets between spouses is tax neutral ie there are deemed to be transferred at cost giving rise to no gain or loss.

Then at a later date when you were to sell the property then any profit made on it would be split 50:50 and you would pay tax on your share of it only and not on the whole profit.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

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