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Where Taxpayers and Advisers Meet

Maximising Lettings Relief

bustaneardrum
Posts:3
Joined:Mon Sep 04, 2017 9:40 am
Maximising Lettings Relief

Postby bustaneardrum » Mon Sep 04, 2017 9:43 am

My wife and I own 2 buy to let properties with a declaration of trust stating I 'own' 1 % and my wife 'owns' 99%.

We aim to sell both in the next 3 to 4 years.

Do we need to alter this arrangement to maximise our tax allowances when it comes to:-

1 - Personal allowance, and
2 - lettings relief (we previously lived in one of the properties for several years)

eg if the 'gain' on selling is £100k are we allowed to split it 50/50 or will it still be the 99/1 ratio meaning I lose the opportunity to use my maximum allowances?

I hope that makes sense - thanks in advance.

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Maximising Lettings Relief

Postby darthblingbling » Tue Sep 05, 2017 4:57 pm

CGT is based on your beneficial ownership, so yes you would need to alter this if you want to maximise benefits.

If there is any mortgage left then be aware of stamp duty


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