Divorce and lifetime BTL transfer issue?

landlord question uk divorce BTL transfer property118.com

by Readers Question

9:32 AM, 4th October 2022, 4 years ago 1

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Landlord News Landlords Questions

Hi, I would appreciate your help with regard to the lifetime transfer of property to my soon-ex-to-be wife. We are amiable and have agreed on the assets to transfer.

I understand that the flats in question must be transferred in the same financial tax year to be free of capital gains tax, but will she have to pay the same tax when she sells going forward?

Also, is stamp duty applicable on the transfer to her, and if so at what rate?

Can this be mitigated in any way?

Kind regards,
Graham

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Olls63

Member Since January 2020 - Comments: 102

1:38 PM, 4th October 2022, About 4 years ago

Only tranfers that take place in the tax year of permanent separation are free of CGT. The year of divorce is irrelevant. SDLT issues are covered here https://www.patrickcannon.net/news/sdlt-and-divorce-transferring-property/

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