CGT query

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    CGT query

    Hello. Since 2013 my wife and I own a property as tenants in common where the beneficial interest split is 90% her and 10% me. We are now looking to sell the property. I have a large CGT loss and using the HMRC CGT calculator I have calculated that if I change the split to 70% me and 30% my wife I can fully offset the loss against the gains I make on the property - cgt is payable as I let the property.

    My question is is it ok to do this - what will HMRC make of this. As soon as I have submitted form 17 to hmrc I am planning to put the house on sale and hopefully getting it sold within a few months. I have calculated the saving in cgt is 19k.

    No SDLT is payable on the transfer between my wife and I as the outstanding mortgage is below the SDLT threshold

    #2
    What you are planning to do is routine and HMRC will accept the change as a matter of routine admin.
    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


      #3
      Hmrc rules allow transfers between spouses without cgt. The recipient spouse takes on the asset at the original purchase price.

      Comment


        #4
        Reading the below gov page im not sure if i need to complete the sdlt form? My wife is gifting 60% of the property to me but there is a outstanding mortgage of around 70k. Does it mean i am taking on 60% of the mortgage as well? The mortgage has always been in my name.

        https://www.gov.uk/guidance/stamp-du...0or%20services

        Comment


          #5
          Apologies my last post wasnt very clear and I am unable to edit it so I will clarify my query.

          When changing beneficial interest does it mean a percentage of the mortgage is also transferred? I have a 70k mortgage which has always been in my name. In 2013 I transferred the property from myself to me(10%) and my wife (90%) and I signed a declaration of solvency which was required by the mortgage lender. Now as per my first comment I am looking to change the interest to 70% me and 30% my wife


          The reason I am asking is because I have read the below gov page and it looks like a sdlt form has to be completed when there is debt involved
          https://www.gov.uk/guidance/stamp-du...0or%20services

          Comment


            #6
            Any change to the proportions owned should probably be declared to (or agreed by) the lender - it's usually one of the terms of a mortgage.
            It may not be an issue in your case, though.

            I don't see why SDLT will arise, though.
            You're not changing the title - the change in percentage isn't something you'll be registering at the land registry is it?
            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
              If your wife assigns 60% interest to you by "deed of assignment " or "deed of trust", there is no change of the registration at Land Registry . So there is not sdlt to pay.

              Comment


                #8
                Originally posted by vik238754 View Post
                Apologies my last post wasnt very clear and I am unable to edit it so I will clarify my query.

                When changing beneficial interest does it mean a percentage of the mortgage is also transferred? I have a 70k mortgage which has always been in my name. In 2013 I transferred the property from myself to me(10%) and my wife (90%) and I signed a declaration of solvency which was required by the mortgage lender. Now as per my first comment I am looking to change the interest to 70% me and 30% my wife


                The reason I am asking is because I have read the below gov page and it looks like a sdlt form has to be completed when there is debt involved
                https://www.gov.uk/guidance/stamp-du...0or%20services
                Yes, if mortgage is over £40k you'll need to file the SDLT form

                Comment


                  #9
                  Originally posted by Section20z View Post
                  Yes, if mortgage is over £40k you'll need to file the SDLT form
                  Why, there's no change in title?
                  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


                    #10
                    Originally posted by jpkeates View Post
                    Any change to the proportions owned should probably be declared to (or agreed by) the lender - it's usually one of the terms of a mortgage.
                    It may not be an issue in your case, though.

                    I don't see why SDLT will arise, though.
                    You're not changing the title - the change in percentage isn't something you'll be registering at the land registry is it?
                    I don't think I will be registering the percentage change at the land registry. It's something I will confirm with the solicitor who is creating the declaration of trust document.

                    When I did the transfer in 2013 from me to me and my wife the mortgage liability remained solely with me. We signed a a2e legal mortgage. So I am guessing as the mortgage remains with me there is no issue with transfer of debt in relation to sdlt? I am trying to make sense of the following gov page but it doesnt make a great deal of sense: https://www.gov.uk/hmrc-internal-man...ual/sdltm04040

                    Comment


                      #11
                      Originally posted by jpkeates View Post
                      Why, there's no change in title?
                      My bad I misread post as a transfer

                      Comment

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