Name off title deeds to remove tax liability

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    Name off title deeds to remove tax liability

    I am a higher rate tax payer and my wife is not. I have removed myself from the mortgages of the two buy to let properties we have jointly owned and all the proceeds of the properties are now going into an account in my wife's name. Is this enough so I am no longer liable to pay tax on the income from the properties or do I also have to be removed from the title deeds of the two houses.

    I was in the process of coming off the title deeds but it is proving very expensive and complex for various reasons

    #2
    Are you tenants in common or joint tenants? If tenants in common, what does the registration say about the split of ownership.

    There may be capital tax, and SDLT, implications in changing the ownership, and I seem to remember that beneficial ownership proportions can be changed (to say 99:1) without changing capital ownership.

    Comment


      #3
      Hi,

      I may be misunderstanding the answer, my technical knowledge is not good. Both houses are rented (DSS). Neither myself or my wife are tenants in either property. I gather there would CGT implications but they are long term investments so cross that bridge... not sure what SDLT is but if its stamp duty both properties are below the threshold. Interesting about the beneficial ownership proportions, which would solve the problem and avoid future CGT issue, if not the need for a tax return due to the 1%

      Comment


        #4
        There are two different types of joint ownership - joint tenants and tenants in common.
        In the former, you both own all of the property, in the latter you both own your own share of the property.

        They're varieties of ownership, they don't mean you are tenants in the sense of letting.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Thanks, figured it was something like that. I have no idea if we are joint or common. I guess which ever is default on buy to lets; purchased 2006. Would it say on the title deeds, I was going to get copies but HMRC site isn't allowing me to register for that service right now.

          Would it make a difference to the question?

          Comment


            #6
            Originally posted by Edgarina View Post
            Would it make a difference to the question?
            Yes. It's key to any possible answer.

            There isn't really a default option.

            You may need to check what was agreed with the conveyancer when you bought the property, although I'd have thought you'd have had to confirm the ownership when your wife took on the mortgages.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              Originally posted by Edgarina View Post
              Thanks, figured it was something like that. I have no idea if we are joint or common. I guess which ever is default on buy to lets; purchased 2006. Would it say on the title deeds, I was going to get copies but HMRC site isn't allowing me to register for that service right now.

              Would it make a difference to the question?
              You can download a copy of the property title for your flat by paying £3 using your credit card at Land Registry Online website ( and take care to avoid fake LR website) . It should show whether you are registered as " joint tenants" or " tenants in common" .

              Comment


                #8
                It won't use the above terms, but tenants in common will have a restriction like:

                No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.
                included on the title register.

                Comment


                  #9
                  How did you remove yourself from the mortgages? Did your wife remortgage in her own name?

                  Comment


                    #10
                    Yup i've paid for the land registry and they don't have a statement like the one you quoted, they really don't say much at all. Isn't property title different from land registry though. I only have the land registry so far.

                    And yes I came off the mortgages by my wife re-mortgaging in only her name.

                    Comment


                      #11
                      The land registry is where all property titles are recorded, so it's the definitive register.

                      If you were on a joint mortgage and joint tenants (which sounds like the case), if you remove yourself from the joint title entirely, your wife will have purchased your share of the property for the value of half the previous mortgage balance.
                      Which may have implications for capital gains tax and stamp duty.

                      If you want to change the proportions of income, you would need to change the title to be tenants in common, then confirm the new split to HMRC.
                      That would need some fairly simple legal work by a solicitor.

                      Otherwise, the income will be deemed to be a 50:50 split, regardless of who receives the income or who is identified as the landlord on the tenancy paperwork.

                      You have to notify the tenants of any change in beneficial or title ownership; in theory, not doing so is a criminal offence, although I have never even heard of a prosecution.
                      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                      Comment


                        #12
                        I find it interesting that the wife has in a way paid for her husbands share of the property by re-mortgaging in only her name yet no SDLT due and no complaints from the mortgage company that the sole mortgagee is not the sole owner.

                        Comment


                          #13
                          if property is in joint tenants see the land transaction form under section B as follows
                          https://mindatrest.co.uk/blog/how-to...nts-in-common/

                          most husband/wifes are joint tenats

                          Tenants in common own fifty fifty like brother/sister purchases

                          Solicitors will usually advise which is best for circumstances

                          Comment


                            #14
                            yes how did you manage to remove yourself from the mortgage yet not on the deeds ?

                            most mortgage lenders would I assume you should be removed from both -

                            So mortgage is in her sole name and yet you own the property ?

                            Comment


                              #15
                              Hi,

                              The property value is about 55k each so no stamp duty, the bank had no issues at and didn't even mention it but of course I said I was coning off the deeds too and its via the banks (very expensive solicitors).

                              I have had an opinion from an accountant and yes it looks like to defo have no tax obligation at all I have to be off the deeds. I will be talking to a separate solicitor who I apparently have to have about it all soon.

                              Thanks for the update on having to inform tenants!

                              Comment

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