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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13980
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I wish to transfer half of my BTL property to wife before

Resolved Question:

I wish to transfer half of my BTL property to wife before putting it on the market to sell. How long before exchange of contracts should I be aiming for . Would I be better transferring now and waiting until the following tax year to complete. Basically what is an acceptable period of time between transferring share of property and exchanging contracts?
Submitted: 1 month ago.
Category: Tax
Expert:  F E Smith replied 1 month ago.

What is the reason for doing this?

Is there any possibility that you are going to be chased by creditors or potentially made bankrupt or is there another reason?

The full background detail be really useful please. Thank you

Customer: replied 1 month ago.
I just simply wanted to take advantage my wife's CGT allowance. When I originally asked the question it was under "capital gains tax" heading so that's why I didn't actually mention it in the question. I wanted to gift her half. Just needed to know whether she could use her allowance when selling her share of the property. Or whether she would have to wait for a while before deciding to sell in order for her to be able use her yearly CGT allowance. I have read conflicting reports on this issue. Some saying all you have to do is make sure the transfer is completed before selling. Others saying you would have to wait a suitable amount of time before selling. We might even decide to keep renting it out. Just wanted to be aware of all the possibilities.
Expert:  F E Smith replied 1 month ago.

Thanks. It was in UK law. CGT isnt my area. I will opt out and transfer to UK tax

Expert:  Sam replied 1 month ago.

Hi

I am Sam and I am one of the UK tax experts here on Just Answer.

Its fine for you to make this transfer, which in itself will not give rise to a capital gain arising (as there is deemd to be no loss and gain between husband and wife) but so that HMRC accept this transfer without taking issue with it (as it will allow you to benefit from 2 x capital gain exemption allowances) then transfer before 05/04/2018 and sell after 06/04/2018 so both transactions occur in separate tax years

Let me know if I can assist further

Thanks

Sam

Customer: replied 1 month ago.
Hi SamIs it true that if the sale proceeds for each of our share is less than 4 times the CGT allowance and the gain is within the the CGT allowance then this sale does not need to be reported to HMRC.Thanks
Riaz
Expert:  Sam replied 1 month ago.

HI Riaz

I have no idea what you are asking .... but as this is a new question this needs to be treated as such by posting anew question as per Just Answer ruled, as I have fully answered your original question so I have sent you an request fro additional Q & A time

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 13980
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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