giftiing 1% to spouse - CGT and Stamp Duty
Posted: Mon Mar 12, 2018 4:34 pm
Hi - I am looking to gift 1% of my BTL property to my wife who is a basic rate tax payer (I currently own 100% and am a higher rate tax payer) in order to secure CGT benefits when I come to sell and favourable rental tax on an annual basis. As I am currently looking to re-mortgage this is an ideal time to do this
-Property is worth 500k,
- purchase price when bought £300k,
-Outstanding mortgage is 300k. (we also have a mortgage on our residential property).
Would I be correct that Stamp Duty would be £90 (300k mortgage * 1% wife share * 3% stamp duty) have I got that incorrect?
For CGT purposes would she only have to pay tax on her 1% of the profit but would save me paying tax on 2k as that would be her taxable portion but would be covered under her CGT (e.g 500k – 300k = 200k * 1% wifes share)
Is there anything else I should consider
-Property is worth 500k,
- purchase price when bought £300k,
-Outstanding mortgage is 300k. (we also have a mortgage on our residential property).
Would I be correct that Stamp Duty would be £90 (300k mortgage * 1% wife share * 3% stamp duty) have I got that incorrect?
For CGT purposes would she only have to pay tax on her 1% of the profit but would save me paying tax on 2k as that would be her taxable portion but would be covered under her CGT (e.g 500k – 300k = 200k * 1% wifes share)
Is there anything else I should consider