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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4979
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My wife and I jointly (40%:60%) own a BTL property. I am a

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My wife and I jointly (40%:60%) own a BTL property. I am a higher rate tax payer. She is self employed and basic rate. We receive c.£15k p.a. in rental income and have a c.£150k mortgage on the property. With changes to interest relief, I think it makes sense to move ownership 100% to my wife. Can anyone advise what the process for doing this is and what the potential tax considerations are (e.g. is there any tax liability on transfer of ownership between us? we will then only get her CGT annual allowance to use if we ultimately sell the property, unless it is possible to transfer back?)
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question.

If you wish your wife to claim 100% beneficial interest in the joint property, you should complete Form 17 and submit it to HMRC with evidence in the form of a declaration or trust deed.

More information on this can be found here

https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17

There is no CGT liability on transfer of assets between spouses .. they are transferred at original cost and are tax neutral i.e. no gain/no loss

You would only get one lot of gains annual allowance if ownership of the property was in her name only. You may wish to have 90:10 split in her favour and avail 2 lots of gains allowance.

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.

Expert:  taxadvisor.uk replied 1 year ago.

Hi there, just checking if you have any points that need further clarification.

Many thanks

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