Hello
I'm trying to understand any tax implications, in terms of stamp duty, income tax and CGT on the following scenario.
I am retiring shortly, and my wife is also stopping working. We will have some income from BTL property. I will be a basic rate tax payer, but my wife's income will be about £5k below her personal tax allowance. I inherited a property from my parents in 2011. It was valued at the time at £195k. It's current value is 350k. For the last year it has been rented out, we hope to continue to renting it out. It current has a £210k BTL mortgage. In order to minimise our tax liabilities what is our overall best option, and what costs are involved? The options I know of are:
1. Simply get my wife to gift her £1250 tax allowance to myself?
2. Gift 50% of the BTL property to my wife so that she can use her full tax allowance and which may help with CGT when we sell the property? I believe that some Stamp duty might need to be paid with this option?
3. Something else?
Many thanks
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