Change of Beneficial Ownership

Hi All,

I am wondering if you can help.

I am looking into changing the beneficial ownership of my 3 BTL properties, all of which are mortgaged, and owned jointly as follows:

X2 Joint Tenants with my Father (He is a Nil – Scraper Basic Rate Tax Payer)
X1 Joint Tenants with my Wife (Nil Rate Tax)

Based on my employed income and forecasted share of dividends, company car tax and rental profits for this current 18/19 tax year, I will lose my personal allowance.

As such, a friend mentioned changing the beneficial ownership of the BTL’s to my Wife and Father, but to retain a 1% interest myself.

My questions therefore are:

• Are the any immediate tax issues such as SDLT or CGT
• If I am “assigning” the income, does that mean I am also assigning the capital value in the same proportion
• What happens in the event of death (my father is obviously older than me)
• What happens in the event of divorce
• Are there any other considerations that I need to be aware of

Thank you for you help.

Steve