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Where Taxpayers and Advisers Meet

Allowable expenses upon transfer of equity.

ollie
Posts:17
Joined:Wed Aug 06, 2008 3:31 pm
Allowable expenses upon transfer of equity.

Postby ollie » Mon Oct 18, 2021 3:38 pm

I wish to transfer a share (approx 10%) of a property to my daughter. The property is rented out with a small mortgage. I am considering transferring more than the amount allowed by the CGT tax free limit so understand that 18% tax is payable on the extra amount (up to higher rate tax limit). I have rental income from another property and I believe that this forms part of my total income when assessing how much CGT is taxed at 18% before going into the 28% range.
My question is: when calculating my total income for CGT on transfer of equity can I set rental expenses such as mortgage/ repairs improvement costs against rental income to calculate how much of the transfer would be liable to 18% tax?

Hope this makes sense - and thank you in advance for any replies.

O.W.

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

Re: Allowable expenses upon transfer of equity.

Postby pawncob » Sat Oct 23, 2021 11:08 am

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim1020
With a pinch of salt take what I say, but don't exceed your RDA

ollie
Posts:17
Joined:Wed Aug 06, 2008 3:31 pm

Re: Allowable expenses upon transfer of equity.

Postby ollie » Sun Oct 24, 2021 7:05 pm

Thanks pawn cob.


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