Foursome want to split tax efficientlyMake Text Bigger
Nine years ago my wife, myself and two friends did two Joint developments. Land registry and mortgages in all 4 names, but our tax lives are massively different now. Whilst we have a good amicable relationship I would like to figure out how we “de-link” ourselves by splitting up and having one property each without having loads of CGT or SDLT.
My wife manages both properties through our very small lettings business. New AST’s signed a year ago, now rolling.
Both properties are 3 bed EOT houses worth roughly the same (Bluebell Purchase £158k, Mortgage 155K, Est Val £220k – Merlin Purchase £125K, Mort £110k, Est Value £200k )
We used last years CGT allowance but have nothing planned for this years, so have both CGT allowances available to us. – If it helps I have a company that flips one commercial conversion to residential flats each year. Profit goes into Pension pots (we are 60 and 64).
Neither of us work and we keep our joint incomes well inside the 40% Tax bracket. We have 4 other properties.
I cannot give you any information about the other couples tax situation, which makes me feel the partnership path might be uncomfortable.
Any suggestions how we de-link ourselves in a tax efficient manner?
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