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Where Taxpayers and Advisers Meet

CGT Buy To Let - Transfer Share to Spouse

caffe
Posts:25
Joined:Wed Aug 06, 2008 4:02 pm
CGT Buy To Let - Transfer Share to Spouse

Postby caffe » Fri Dec 01, 2017 11:35 pm

Hello I wonder if someone could clear up a question in regards to the treatment of CGT when transferring a share of interest to their spouse before selling the property on.

A husband & wife own a buy to let property that they bought together 50/50.
As I understand it if they sold the property as it is, they would both have to pay CGT after any letting relief on any profit they make over the CGT allowance.

If however the wife transferred her 50% interest over to her husband before the sale and he then sold on the property, would he be liable for the CGT on all of the property or just the 50% he originally owned?

Thanks

maths
Posts:8333
Joined:Wed Aug 06, 2008 3:25 pm

Re: CGT Buy To Let - Transfer Share to Spouse

Postby maths » Sat Dec 02, 2017 1:29 am

s I understand it if they sold the property as it is, they would both have to pay CGT after any letting relief on any profit they make over the CGT allowance.
Lettings relief is only available if the property had been a sole or main residence of the couple at anytime.
If however the wife transferred her 50% interest over to her husband before the sale and he then sold on the property, would he be liable for the CGT on all of the property or just the 50% he originally owned?
100% of the property.


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