When to pay CGT

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    When to pay CGT

    Hello.
    First time poster on here and trying to get some advice without spending a fortune!
    Unsure if this wants to be in the Tax or Conveyancing forum, perhaps both?

    I am the sole owner of a property (mortgage paid off) that I rent out.
    I want to transfer all income from the rental to my wife to reduce the tax I pay but keep the property in my name only. I am looking into getting a Deed of Assignment written up.
    I know CGT may have to be paid at some point but would this be when the house is eventually sold or when the deed becomes active?
    If CGT has to be paid when the deed becomes active, does it have to be paid again (if the value has increased since the deed went live) when the house is sold?
    Any help greatly appreciated.
    Many thanks Chris

    #2
    Declared and paid within 60 days of sale:.
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      The deed isn't a disposal and isn't (as far as I know) a CGT event of any kind.
      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).

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        #4
        Hi posters. Many thanks for your quick responses with the answer that I was hoping for. Cheers Chris

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          #5
          I do not think you can divide the rent two ways, unless you give a portion of the property to your wife. You cannot do this on the cheap .Good solicitors will advise for free but will charge for preparation of legal instruments that may ensue.

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            #6
            As a Landlord I choose a letting agent to manage my property. Why dont you make your wife your Letting Agent, she gets all the rent, and keeps it, Its your choice. Obviously take the advice of an Accountant, you could consider setting up a Ltd Co to act as a Letting Agent with her as the only director.

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              #7
              Originally posted by gnvqsos View Post
              I do not think you can divide the rent two ways, unless you give a portion of the property to your wife.
              You can assign all of the rent to someone else using a Deed of Assignment.
              I've just never heard of anyone ever doing so or being advised to do that - so I've always considered it a dead end.
              Can't explain why, though.

              Originally posted by Another Fine Mess View Post
              Why dont you make your wife your Letting Agent, she gets all the rent, and keeps it, Its your choice.
              Because that's a tax fraud.
              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


                #8
                Hi Everyone.
                Didn't anticipate there would be any more replies to my thread.

                The reason behind my thinking is that solicitor told me a deed of assignment (rather than a deed of trust or any other method) would be cheapest and simplest way to transfer the rent to my wife.

                Thanks for your replies
                Chris

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