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Hello!


Brett

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Hi all,

just came across this site and browsing some great posts.. just wanted to say hi to you all and look forward to making more contacts.. i've been investing for 6 years and have 7 buy to lets and 1 buy to sell i've had an offer on today that i've accepted! ..so can maybe help some people and still learning from others!

i'm based in Peterborough (for my sins!) by the way..anybody else local?

ps:

Sherena (plym77) can you clarify the situation with my BTS in regard to CGT transfers as i'm recently married and the property was bought this autumn in my name only and will make about 20k when i sell and i was looking into trying to utilise the joint allowance angle if possible, also how does the declaration of trust work? i don't think i will be doing this though?!

Many thanks,

Brett

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Hi Brett!

Firstly, welcome to the forum! I hope that you find it useful, there are several experts in different fields here and also some experienced landlords who are always happy to help!

Now with regard to your tax question....

In order to utilise both CGT allowances, I would suggest that you go to a solicitor and have a Declaration of Trust drawn up transferring a proportion of the ownership to your wife. As a married couple this transfer can be done at no gain-no loss, ie. tax free. The Declaration usually costs a few hundred pounds but saves the hassle of going to Land Registry (which can be a bit more complicated if you have a large mortgage, as your mortgage company may not want to you to give away equity and retain the 'loan' as such).

This will enable your wife to take on your ownership period and when you sell - two annual exemptions of £8800 are available (providing they have not been utilised against other sales in the year).

If one of you is paid substantially more than the other, then you should look to maximise the share owned by the lower earner, thus potentially reducing the liability further.

The only caveat would be to be very careful. It is important that you have not 'purchased with a view to making a profit' as HMRC may argue trade instead of Capital Gains, which would lose you the CGT reliefs avaiable, and possibly increase your liability. This is just something to be careful of...

I hope this helps - should you want the proportion calculation done, or require any speciific advice, I would be happy to offer my services - email is sherena.glanton@horwath.co.uk

I can also recommend a solicitor I use for my clients regularly for Declarations of Trusts.

Regards

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