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Where Taxpayers and Advisers Meet

Transferring Property to Spouse and Income Tax

McAhuna
Posts: 3
Joined: Sun Jan 25, 2015 9:14 pm

Transferring Property to Spouse and Income Tax

Postby McAhuna » Sun Jan 25, 2015 9:25 pm

I wonder if anyone would be good enough to advise please?

I am a higher rate tax payer, but my wife is a non-earner.
We are joint outright owners (nor mortgage) of a flat we have just started renting.
For tax purposes it would obviously be far preferable if the flat were in her name.
But what is the easiest and most cost effective way to do this?
e.g;
1) Do we have to transfer ownership to her name only?
2) Does this have to be done via a solicitor, or can we do it ourselves with the Land Registry?
3) If it has to be a solicitor is there a cheap internet based option, or must we pay a fortune to a local firm?
4) I have heard that to get the tax benefits we may not even have to transfer ownership, something about 'beneficial ownership' and filling in a form. Is this correct?

Any advice gratefully received :)

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: Transferring Property to Spouse and Income Tax

Postby section 44 » Mon Jan 26, 2015 1:54 pm

1) Do we have to transfer ownership to her name only?
no
2) Does this have to be done via a solicitor, or can we do it ourselves with the Land Registry?
no, yes
4) I have heard that to get the tax benefits we may not even have to transfer ownership, something about 'beneficial ownership' and filling in a form. Is this correct?
yes

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Transferring Property to Spouse and Income Tax

Postby GlobalTaxAdviser » Mon Jan 26, 2015 2:20 pm

I would definitely use a solicitor for the declaration of trust and filings at land registry as it is not straight forward and just to make sure everything is done correctly

It shouldn't cost too much

McAhuna
Posts: 3
Joined: Sun Jan 25, 2015 9:14 pm

Re: Transferring Property to Spouse and Income Tax

Postby McAhuna » Mon Jan 26, 2015 2:57 pm

Thanks both for advice.
What I am piecing together is that there are two options
1) Transfer land ownership, which we can do ourselves via land registry (but GlobalTaxAdvisor advises to use a solicitor anyway)
2) Set up "beneficial ownership", presumably via a solicitor?

Of the above two options I am not sure which is cheaper/easier and what are the relative pros and cons?

Also, Excuse my ignorance, but I am not clear as to where the 'Declaration of Trust' fits into these two options?

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: Transferring Property to Spouse and Income Tax

Postby section 44 » Mon Jan 26, 2015 3:36 pm

Of the above two options I am not sure which is cheaper/easier and what are the relative pros and cons?
2 is likely cheaper/easier
but I am not clear as to where the 'Declaration of Trust' fits into these two options
There would be a declaration of trust for 2. A declaration of trust provides for beneficial ownership to be different to legal ownership.

McAhuna
Posts: 3
Joined: Sun Jan 25, 2015 9:14 pm

Re: Transferring Property to Spouse and Income Tax

Postby McAhuna » Fri Feb 06, 2015 12:22 pm

Thanks for the advice


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