Avoid CGT by adding spouse to deeds?
My wife and I jointly own several BTL properties, but one is owned solely in her name in order to maximise tax relief by using her basic rate unearned income tax allowance.
We are proposing to sell one of our properties and my question is regarding changing ownership of the property which is in her name, into joint ownership, to take advantage of the two capital gains allowances. If we were to do this, would both our CGT allowances be usable against the capital gain which has arisen since the property was bought some fifteen or more years ago?
Thanks
Malcolm
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Member Since January 2011 - Comments: 12193 - Articles: 1395
2:07 PM, 11th January 2023, About 3 years ago
Hi David
We took the commercial decision a few years ago that it is uneconomical for our Clients to utilise the services of a Property118 Tax Consultant and Cotswold Barristers to draft Declarations of Trust when compared to dealing with a Conveyancing Solicitor. We can still assist but we don’t promote it because we would have to charge around £1,000 + whereas a decent Conveyancing Solicitor typically charges £250 to £500 plus VAT.
Member Since July 2013 - Comments: 1264 - Articles: 1
8:40 AM, 12th January 2023, About 3 years ago
Bear in mind the allowances are going to be reduced to almost nothing shortly