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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5029
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My wife and I owned a house outright that my parents lived

Resolved Question:

HI
My wife and I owned a house outright that my parents lived in rent free. We took out a buy to let mortgage on the property so as to rent out and fund my parents moving out to another property. We put in place a Declaration of Trust so the rental income would be in my wifes favour 90%/10%. We actually failed to fill in a Form 17 in conjunction with the Trust, so the rental income is still 50/50 for tax return purposes until we do so.
My question is are there any tax implications (stamp duty/CGT) regarding setting up the 90%/10% split because we've taken out the mortgage?
Submitted: 1 month ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 month ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 month ago.

Thank you for your question.

If you give away a percentage of your share of the property to your wife as a gift and there is no consideration, there is mo stamp duty payable.

In addition, transfer of assets between spouses give rise to no gain/no loss for CGT purposes

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.

Customer: replied 1 month ago.
Are you the same person that I spoke too?
Expert:  taxadvisor.uk replied 1 month ago.

yes

Customer: replied 1 month ago.
Ok thanks! Phone call helped clear it up a lot. Should I have been charged twice? Once for the written reply and one for the phone call?
Expert:  taxadvisor.uk replied 1 month ago.

Thank you for your message.

A phone call is a premium service and costs extra. Normally, customers opt for phone call to clarify matters and speed up resolution.

I hope this is helpful.

many thanks

Customer: replied 1 month ago.
I know it was more but but wanted to be sure how much more. First price was £36 and then said £44 to upgrade to call. It wasn’t very clear if it was £8 or £44 on top of £36.
Expert:  taxadvisor.uk replied 1 month ago.

Thank you. I don't get involved in the pricing of questions but £44+£36 appears to be correct.

Many thanks

Customer: replied 1 month ago.
Thank you