12:46 PM, 11th April 2014, About 10 years ago 37
Hi there, I have a B2L property that I bought 9 years ago for £250k and I’ve rented it out from day one. I have never lived there so I cant claim PPR or lettings relief.
I’ve now got a buyer for the property at £325k so even after I deduct £10k buying and selling costs and my accountant has worked his magic with allowances I’m going to be looking at a pretty ugly CGT bill of around £8-10k (my calculations, waiting for the accountant to confirm exactly) which obviously I do not want!
Now currently I’m not married (been with girlfriend for 20 years with 2 kids).
It has been suggested that if I get a quickie marriage sorted and then transfer half the property to my new wife then we can use her annual CGT exemption allowance and it will reduce the CGT bill. However, the cash buyer for my property would like to complete in around 4 weeks which wouldn’t normally be a problem, thing is can I get married in 4 weeks?
But my real questions are:-
1.Will this work?
2.How easy is it to transfer the property into joint names?
3.My partner to be does not work and has the credit rating of a goldfish so will the lender agree?
4.If I show proof to the lender that the property is sold and I’m purely doing this for Tax reasons will they do it?
5.Is it worth the hassle?
6.Is there a better way of avoiding this bill, some secret little tactic maybe that other proffesionals use that me and my accountant are not privy to?
Obviously I do not want to go to prison so legal suggestions only please. I am not trying to scam the tax man, I am merely trying to reduce my CGT bill in any LEGAL way possible even if my ideas are a little cheeky )