Advice on mitigating CGT?

[JOHNRE]

Afternoon, hope you sages can offer some advice.
Just under three years ago we bought an apartment in Manchester with a view to retiring there. We actually lived there for two months but never made a nomination for it to be our PPR. Our son lived there for 2 years and, for the past 8 months it gas been rented out commercially. The property was bought in my wife's name only since there was a sitting tenant at the time and she is a non-tax payer. It will remain tenanted until we sell.

We will be looking to sell the place in about two or three years time and are likely to make a profit of around £50K. Obviously we want to reduce CGT wherever possible; and I have already been made aware that my wife can gift me a half share of the property so I can also use my annual CGT allowance. However, does anyone have any other strategies???

Query....if she gifted me half and we lived there for a couple of months, nominating it as our PPR, would the usual regulations take effect from that point? (including claiming Letting Relief).
Alternatively, could she gift me 100% of the property, I live in it (plus Nomination) - would I then, from that date, be able to claim PPR and lettings Relief at the point of sale in, say, 2020?

Many thanks!

John

[maths]

The tenant has a right to exclusive occupation?

You would therefore presumably need to ensure he/she vacates before moving in?

The issue will then be whether you will be able to establish the property as your sole or main residence. Simply intending to live there for a couple of months won't work.

Subject to the above the better option would be to transfer 100% to you (not just 50%) prior to moving in.

[JOHNRE]

Thanks for the reply Maths
If my wife were to gift me 100% of the property in, say, two years time and, say, a year later I sold it, am I correct in assuming that I, and only I, would be liable for CGT on the difference between the eventual sale price and the market price at the point of gifting?

John

[maths]

If my wife were to gift me 100% of the property in, say, two years time and, say, a year later I sold it, am I correct in assuming that I, and only I, would be liable for CGT on the difference between the eventual sale price and the market price at the point of gifting?

Not quite.

Yes, you would have the CGT liability on any capital gain on sale. However, your gain is based on market value on sale less original cost of property to your wife (not market value at date of gifting).

[JOHNRE]

Many thanks Maths