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Where Taxpayers and Advisers Meet

Advice on CGT

Euro2
Posts:3
Joined:Mon Mar 29, 2021 3:30 pm
Advice on CGT

Postby Euro2 » Mon Mar 29, 2021 3:43 pm

Good afternoon,
I wonder if the experts could help with some advice regarding CGT.

I am married and our main home is in my name. The current value of this property is around £450k, purchased many years ago for around £72k.

We subsequently bought a holiday home in the UK for £162k and this is in joint names with equal shares.

We would like to sell the holiday home with a view to purchasing a larger property in the same location to become our main home at some time in the future, with me finally selling the current main home.

My question is, is it possible to transfer the second home into my husbands name so as to avoid me paying CGT when we sell this property. Alternatively is there any other way of reducing our tax liability regarding the properties.

Many thanks for your help.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Advice on CGT

Postby pawncob » Tue Mar 30, 2021 12:59 pm

Transfer to husband would increase the CGT liability, so why do it?
With a pinch of salt take what I say, but don't exceed your RDA

Euro2
Posts:3
Joined:Mon Mar 29, 2021 3:30 pm

Re: Advice on CGT

Postby Euro2 » Tue Mar 30, 2021 2:08 pm

Thanks for your reply. I am hoping to reduce my CGT liability by transferring full ownership of our holiday home property to my husband so that we each own one home.

He has no ownership of our main home so we would end up owning one home each.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Advice on CGT

Postby pawncob » Tue Mar 30, 2021 3:57 pm

You'd only get one PPRR though (on your house). CGT would increase as a result.
With a pinch of salt take what I say, but don't exceed your RDA

Euro2
Posts:3
Joined:Mon Mar 29, 2021 3:30 pm

Re: Advice on CGT

Postby Euro2 » Tue Mar 30, 2021 4:25 pm

I see. Many thanks for your input.


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