Until October 2012 I was the sole owner of a house (house A) I paid £80K in 1996. I have inherited another house which is now my main residence, I have informed HMRC.
I have been unable to sell house A (valued at £210K) , so intend to Let. However the tax on the income for me is very high (effectively 60% as I will lose 3x child benefit).
My wife is not a tax payer.
I am wondering if I can sell house A to my wife for £210K, so she can become the landlord , hence avoid rental income tax. I think SDLT would be £2100.
My theory is that by selling I will not pay any tax as my PPR should apply.
I think that if / when my wife sells in the future then she would be liable for CGT if she sold for £220K plus, but think that this is preferable.
I would appreciate if anyone could confirm that my understanding is correct. I wasnt quite sure that as she is my wife if my PPR would be at risk.
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