Reducing 28% CGT, can I put property in wifes name?

[markbigears]

Evening, with the emergency budget over and the figure of 28% announced, i'm looking to reduce as much as possible my capital gain. The let property i'm selling is in my name and I am a higher tax payer. Would it be possible to sign over the house to my wife to get the lower 18% tax? Any advice appreciated

[Telometer]

Yes.

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[markbigears]

Really? Can I ask. Are you an accountant? Surely the inland revenue have obviously thought of this?
I'll get in touch with my accoutant, but do you know, are there any catches? Like timescale of ownership in my wifes name before I can avoid CGT? The property is being advertised right now. Bedt regards

[Telometer]

As this is the internet and you have no way of proving the answer one way or the other, it is immaterial whether I answer yes or no to your question.

There are not really any catches; this is a perfectly acceptable planning method. Remember, though that CGT is paid at the appropriate marginal rate, so once your wife's gain and other taxable income exceeds 37k she will be paying higher rate (28%) CGT.

If you both own the property, you can both benefit from your annual exemptions. So you will wish to keep a sufficient percentage of the property in order to use up your own 10k CGT-free sum.

[jeffrey]

There might be SDLT problems if the property is to be transferred subject to an existing mortgage that continues in force.

[markbigears]

Many thanks for your replies chaps, really appreciate the advice. Best regards, Mark