Reducing CGT by getting married

Reducing CGT by getting married

12:46 PM, 11th April 2014, About 10 years ago 37

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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. Reducing CGT by getting married

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 )

Regards

Rob 🙂


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Comments

Mark Alexander - Founder of Property118

13:59 PM, 11th April 2014, About 10 years ago

Reply to the comment left by "Keith Cole" at "11/04/2014 - 13:54":

Revenue Commissioners v The Duke of Westminster (1936 19 TC 490)

The judges words ....

“Every man is entitled, if he can, to order his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be.”

.

14:02 PM, 11th April 2014, About 10 years ago

Reply to the comment left by "Mark Alexander" at "11/04/2014 - 13:38":

re Mark's earlier comment on this subject, its getting off the point a bit but if you're not married and you hold a property in your sole name your ex is highly unlikely to have a claim on it even if you've lived together for 20 years.

It'll be taken into consideration when assessing how much you contribute to the cost of supporting children from the relationship but that's another matter.

After divorce number two (I told you I speak from experience) my solicitor said "If you don't want a partner to have a claim on your assets don't get married and don't put anything in joint names".

I should add that I've subsequently broken that rule - who said romance was dead?

Mark Alexander - Founder of Property118

14:08 PM, 11th April 2014, About 10 years ago

Reply to the comment left by "Steve From Leicester" at "11/04/2014 - 14:02":

LOL - me too - my wife is an accountant - mmmm!!!
.

14:23 PM, 11th April 2014, About 10 years ago

Reply to the comment left by "Keith Cole" at "11/04/2014 - 13:54":

Might well be because we're all sick to the back teeth of MPs and the very rich lining their own nests. Park Lane One, the most expensive development in Europe, stamp duty paid: nil, nado, none.

George Osborne, family wealth held in overseas accounts. David Cameron owns four houses, 3 in London, 2 let out. We pay the interest on his 1.5 million mortgage in Gloucestershire.

Rob wants to save 8k. Good for him.

Rob

14:46 PM, 11th April 2014, About 10 years ago

Exactly, if you cant beat them join them.

14:49 PM, 11th April 2014, About 10 years ago

Reply to the comment left by "Gillian Schifreen " at "11/04/2014 - 14:23":

Actually it's arrogance that will be your downfall and GREED will get you there.

Mark Alexander - Founder of Property118

15:09 PM, 11th April 2014, About 10 years ago

Reply to the comment left by "Keith Cole" at "11/04/2014 - 14:49":

WARNING

The purpose of this forum is to facilitate the sharing of best practice amongst landlords, tenants and letting agents - namely the Private Rented Sector. I fail to see how your latest comments contribute towards this objective. If you continue to abuse the purpose of this forum you will be banned from posting again.
.

15:19 PM, 11th April 2014, About 10 years ago

Reply to the comment left by "Mark Alexander" at "11/04/2014 - 15:09":

feel free, your the boss, if you don't understand the posting then far be it for me to explain it to you.

Kevin Thomson

20:02 PM, 11th April 2014, About 10 years ago

Out of order Keef.

Lawrence, you have too much humour. Excellent.

Regarding the question, I'm sure there are far worse reasons to get married. Far worse. But, it's only the kind of question a guy would ever ask....women simply aren't as altruistic or practical as us.

TJ

8:27 AM, 12th April 2014, About 10 years ago

What would happen if you added another person to your Deeds of a BTL property and did not inform the Lender?

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