Transfer share of Ownership

[ehuplladie]

I am about to sell a 2nd property which is in my sole name and wondered if transferring a half share of the property to my wife would be tax beneficial. Is there a minimum timke limit from the transfer to the sale to obtain the benefit>

[maths]

If your and wife's marginal rates of income tax are different a transfer may be worthwhile.

In any event an additional annual exempt amount would be available (£11,100).

No minimum time to hold transferred interest. Needs to be done properly and preferably before the house is advertised for sale.

[ehuplladie]

Many thanks Maths for your reply.
'In any event an additional annual exempt amount would be available (£11,100)'

I'm not clear on this, does this mean even without a transfer the additional exempt amount is available for both?

The house has actually been put up for sale but not yet actually sold.
Does this make any significant difference?
If it does what are they and what are my options.

Thanks in advance.

[maths]

I'm not clear on this, does this mean even without a transfer the additional exempt amount is available for both?

No; a transfer would be a prerequisite.

The issue is whether HMRC could argue that the transfer was such that in substance the sale by the wife of "her" interest was in fact a sale on your behalf and hence any CGT is yours not hers. Longer time between transfer and sale in general the better.

She should receive her share of the proceeds in a bank account in her name only, not a joint account.

[ehuplladie]

Thanks again Maths,

I think I'm right on this,

As far as the HMRC is concerned regarding second homes even if the partner is not named as part owner of a second home they are still regarded as part owner.

Also if e.g. we were to split up get divorced all assets are taken into account and usually splt 50-50 or some other value, so again the partner is regarded as having an interest even though not on the property title.

As the property in question has no mortgage couldnt I just gift 50% of the property and therefore reduce the CGT on the sale.

Maybe getting this all wrong, but welcome anything further.

[maths]

No, not correct.

What happens on a divorce is not relevant here.

Beneficial ownership follows legal ownership. Wife has a beneficial interest only if you can demonstrate that this was the case on acquisition or subsequently you took action to effect a transfer.