Transfering part ownership to spouse

[Ian999]

Hi,

I'm quite new to property investment and have a few questions relating to ownership of a property.

I'm a high rate tax payer, I have a couple of properties soley in my name. I was thinking of transfering some ownership of the properties to my wife (who is a basic rate taxpayer). Could anyone tell me how I could do this. Am I right in assuming this would be more tax advantageous for me?

I would also appreciate it if someone could tell me what % of ownership i should pass to my wife to maximise my tax break. Can this transfer be done by me contacting the mortgage company and asking them to include her name into the mortgage? or is there another route?

Thanks in advance for your help

[Tax Accountant]

Hi,

I'm quite new to property investment and have a few questions relating to ownership of a property.

I'm a high rate tax payer, I have a couple of properties soley in my name. I was thinking of transfering some ownership of the properties to my wife (who is a basic rate taxpayer). Could anyone tell me how I could do this. Am I right in assuming this would be more tax advantageous for me?

I would also appreciate it if someone could tell me what % of ownership i should pass to my wife to maximise my tax break. Can this transfer be done by me contacting the mortgage company and asking them to include her name into the mortgage? or is there another route?

Thanks in advance for your help

Perhaps best for now is to have it beneficially owned by your wife as 99% and you as 1%. This will allow you to save tax on the profits at 18% (40% less 22%).

You may need your wife to transfer this back as 50/50 ownership before any possible sale in the future.

But take legal advise of the position if your wife is to divorce you or to deal with the property against your wishes.

I would suggest that you contact your solicitor to have the property in joint names as Tenants in common.

Alternatively, cheapest and easiest way is to have a Trust Deed drawn up by your solicitors to reflect your intentions.

Ramnik