Hello forum,
I wanted to ask a question about a fairly unusual situation. My husband and I bought a flat in Cambridge jointly in 2013 and we transferred it into my name alone after 6 April 2015). For the past year we've letting out the flat. At that time he became non UK resident+non tax resident while I am a UK tax resident in the upper band, so paying a lot of tax on the rental income.
I'm thinking it might be best to transfer the flat either fully or partially to him to reduce income tax but am worried about eventual CGT. My questions are, if I transferred the property to his name and he eventually sells the flat:
-- would he now acquire the property with a value of the price we paid for it originally? as a non resident would he pay tax only on the post 5 April 2015 value / would he be allowed to rebase ?
-- would he be able to claim residence relief for the time he and I were living there? Here it seems important that I would be transferring it to him at a time when it is let and clearly not our main or only home.
-- Would his date of acquisition still be 2013 or would it be now?
-- would he receive any other relief? I believe I've red that non residents get residence relief for any year in which they or the spouse lives in the property 90 days, in which case I could possibly try to arrange this?
-- OR should I wait until a time when I myself become non resident, which is likely to happen?
Thanks very much for your help
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