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I am in the process in remortgaging my buy to let property and I am also in the process in adding my wife as 50:50 ownership split.
I wanted to know what is the maximum split I can give my wife? My wife is a NIL tax payer.
Reply from Mark Alexander – founder of Property118.com
There are two ways to own property. The most common is “Joint Tenancy”. technically you jointly own 100% but HMRC tax you on the basis of 50/50.
The other basis of ownership is “Tenants in Common”. With a Declaration of Trust you can decide who owns what percentage, e.g. 60/40, 80/20. 99/10, 99/1 or whatever you like.
As a sole owner you could hold 100% of the property as a nominiee (bare trustee) for somebody else, or any other percentage for that matter, so you needn’t necessarily transfer the property into joint names when you remortgage. In fact, you don’t need to remortgage at all, but by all means do so if that results in your getting a better deal.
There’s more about ownership splits for tax purposes and Declaration of Trust available via the page linked below.
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