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bigduckontax
bigduckontax, Accountant
Category: Tax
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I'm thinking of buying a rental property with my husband. We

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I'm thinking of buying a rental property with my husband. We are going to remortgage our house to get the deposit and then raise the rest of the money with a buy to let Morgage. Is it possible to put our current house in my name and the buy to let property in his name to safe on tax ie capital gains tax when the property is sold. We earn enough to have the remortgage in my name and the buy to let in his. Also, the house we are considering buying is my brothers. its been valued at £300k. He has a Morgage of £100k left on the property. In order to save on stamp duty can we buy the property from him for £200k and he gift the rest over to us.
Submitted: 1 month ago.
Category: Tax
Expert:  bigduckontax replied 1 month ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

I do not think this is a particularly good idea. If you buy the property in joint names then on disposal the liability on the gain would be split 50/50 and you would both be entitled to an Annual Exempt Amount (AEA), currently 11.3K. If you lived in the house before or after the letting period you would also be entitled to Letting Relief (LR) up to 40K each. Mortgages do not come into the Capital Gains Tax (CGT) equation at all. Whether you avoid Stamp Duty Land Tax (SDLT) is questionable as gifts count as a disposal and aggregated with the purchase price.

I do hope that I have given you some food for thought.

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Expert:  bigduckontax replied 1 month ago.

Thank you for your support.