Does the following sound above board or will it trigger anti-avoidance regs?
I have expenses of roughly 10K from sorting out a property prior to letting so I let it for 8 months - estimated income will be 10K. No income tax therefore due as income = expenses.
I then transfer 99% to wife. SDLT of approx 5K due to mortgage but I estimate income tax savings by wife will be of the order of 3.5k pa so should break even in another 16 months.
I'm assuming wife cannot use expenses I've incurred as I own property 100% and we weren't married when much of them were incurred.
Will wife be able to claim mortgage interest relief if I have mortgage? For technical reasons (collective enfranchisement) I do not want to change legal ownership.
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