Transferring Existing Property to Wife - CGT

[jpf7]

I currently own 50% of a buy-to-let property, the other half is owned by my wife. I want to transfer full ownership of the property and the associated rental income to my wife. Is there a CGT liability with such a transfer? Is there any tax or legal related logic in me retaining any share of the property? I know this is not a legal forum but would appreciate any insight).

[someone]

My non-expert understanding.

CGT - no
SDLT - possibly if there's a mortgage or other consideration is being paid (including additional rate if she owns another property)

Legal - if your wife is 100% beneficial owner and legal owner then she can sell it without your knowledge or consent or she can take out a mortgage on it, again without your knowledge.

Tax - if you've ever lived there as your main home then you'll be giving up any possible PPR and lettings relief on eventual sale. If you retain a 1% share then you will retain any PPR that you already have on a transfer back to you. (Maybe not relevant if it's never been your PPR)

[maths]

You don't state who owns the legal title or whether the property is mortgaged?

Any transfer of the beneficial interest is inter-spouse and no CGT arises on this transfer.

[jpf7]

Thanks for the responses.

The property has a joint mortgage which is less than 1% of the current market value (probably not relevant) and is owned as joint tenants in common. There will be no payment or any consideration for the transfer and it has never been our permanent private residence.

[maths]

is owned as joint tenants in common

The above refers to how you hold the beneficial interests. My query related to the legal title ie is it in both names or just in the name of one of you?

You mention a joint mortgage which suggest that the legal title is held by you both?

If legal title is held by you both then it is possible that the mortgagee will not agree to you relinquishing your hold of part of the legal title. In which case you may transfer your beneficial interest to the wife but you and her will both remain on the legal title.

[jpf7]

Thanks for your help, much appreciated

[jpf7]

Sorry for completeness on this discussion the property is in both our names, joint legal title