Using up CGT Allowance

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    Using up CGT Allowance


    I have a small portfolio of houses up North - so there has been minimal capital growth in the fifteen years that I have had them. They are not in the main mortgaged. I would like to rebalance my portfolio to closer where I live.

    I am thinking about transferring a half share of one to my wife which I understand is a tax exempt transfer. We can then both sell it to a Ltd a couple of weeks later to a Company that I own - I bought it for about £28k and it's current value is circa £50k (I can find Rightmove comparables to justify this and can get an estate agent valuation), so there would be minimal CGT after both our personal allowances. Then I can sell it from the company (which has property related tax losses) after the transfer.

    I am happy to do all the Land Registry forms and conveyancing myself and there is no stamp duty. I have a clauses in my ASTs stating that it is transferrable to any new owner.

    Can anybody tell me if there is anything that HMRC is not going to like about this?

    And can I do this as a conveyor belt with one a year for the next few years?

    Get a proper valuation by a proper surveyor which is for the purpose of the transfer. Estate agent "valuations" and Rightmove comparables (unless there are many actual sales of sales of identical units in the identical area of identical quality) is not going to be good enough.

    As to the maneuver via the company, I cannot comment, but yes you can do transfers serially year by year. But at these values why do you need the company part anyway -- just sell one per year.


      Hi Andrew. Many thanks - the company part enables me to ensure that this is all done this tax year as I don't have to find a buyer.


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