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Where Taxpayers and Advisers Meet

Transfer property asset

kanrent
Posts:119
Joined:Tue Dec 16, 2014 8:20 am
Transfer property asset

Postby kanrent » Sun Oct 03, 2021 7:47 am

Hi I'm a non resident British citezen is it possible to transfer my buy to let property to my foreign wife also non resident to reduce my CGT bill before I sell the property.

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Transfer property asset

Postby Jholm » Mon Oct 04, 2021 10:14 am

Assume it's UK residential property?

Yes, you can use a declaration of trust to transfer a % to her. I assume you would transfer 50% and sell it 50/50.

kanrent
Posts:119
Joined:Tue Dec 16, 2014 8:20 am

Re: Transfer property asset

Postby kanrent » Mon Oct 04, 2021 1:37 pm

Yes it's a UK residential property currently has a tenant.
Does it make any difference my wife being a forigner with no uk connections.
The property in 2015 when non residents became liable for CGT was valued at £280,000 if I transferred 50% to my wife and we sold it for £420,000 can you tell me approximately how much CGT I would have to pay

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Transfer property asset

Postby Jholm » Tue Oct 05, 2021 4:30 pm

Using those figures, your share each would be....

Sale price: 210,000
Costs: (140,000)
Gain: 70,000
Less AE: (12,300)
Taxable: 57,700

CGT @ 18% / 28% depending on your other income.

Doesn't account for any other allowable costs or reliefs that might be available (no info suggesting there are).

Tax would be payable via a UK property account within 30 days of completion.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Transfer property asset

Postby bd6759 » Thu Oct 07, 2021 11:02 am

But you wife would have a similar gain. Overall though, you will jointly pay less than if you held it yourself.

Having no UK ties does not exempt your wife from CGT.


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