Single versus Joint ownership

by **Thor** on Thu Jan 12, 2012 1:48 pm

I bought a flat 9 years ago, which I have let out since that time.

I have since got married.

Would it be advantageous from a tax perspective to transfer the ownership of this flat into joint names (I'm thinking for the purposes of CGT on any future sale)? Or, do HMRC deem the property to be held jointly due to our marriage?

There's probably a couple of questions in there!

Thanks in advance

by **Peter D** on Thu Jan 12, 2012 3:28 pm

At present the property is solely yours as is the rental income and the IT associated to that. If you were to transfer a share of the property to her a month or two prior to and exchange of contacts, and that share produced a taxable gain of greater that the CG allowance, presently £10,600, then she would be able to use that up. However you need to look at your IT situation, are you a higher rate tax payer, does your wife work and at what tax rate. It may be efficiaent to transfer a much larger share to your wife. Regards Peter