CGT on transferring properties

[Perry Jane]

Hi,

My ex-partner and I have 3 properties, 2 no. buy to lets (btl) plus our family home – all jointly owned.
We split up about 6 months ago. The family home has no mortgage on it.
We propose to transfer the 2 no btl properties to my ex-partner solely plus a cash sum and transfer the family home property to me solely.

The btl properties have approx:

Property 1)
Equity of 42.5K – owned for total of 8yrs and 5mths, during that time it was rented out for a total of 7yrs and 4mths and vacant for a total of 1yr and 2mths. Currently vacant.

Property 2)
Equity of 59K – owned for total of 3yrs and 6mths, during that time it has been rented out for a total of 6 months and vacant for a total of 3yrs. Currently rented out.

My question is;
a) will CGT be payable by me on transferring the btl properties to my ex-partner (not married)
b) roughly how much?

Hope this all makes sense?

Thank you in advance.

[Lee Young]

CGT will be based on the difference between the value when you transfer them and the value when you acquired them. Equity and mortgage amounts irrelevant, as is the time they were rented out unless you lived in either as your main residence at any point which I am, guessing you didn't.

[Perry Jane]

Thank you, we haven't lived in either.

So one bought for £91K and valued at £120K on transfer - difference 29K
other bought for £77.5K and valued at £115K on transfer - difference 37.5K

Is that what you mean? Is the deposit on either irrelevant too?

[Lee Young]

Yes exactly. You may want to consider staggering the transfers so one happens in one tax year, and one in another, to give you the maximum annual exemptions to reduce the tax down a little.

[Perry Jane]

Many thanks for your help.