This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Transfer property asset

kanrent
Posts:83
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:222
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:83
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:222
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:3634
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.


Return to “Capital Gains Tax, CGT”