Granting subleases to my spouse on individual flats, is it taxable ?

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    Granting subleases to my spouse on individual flats, is it taxable ?

    My 1st post ! wasn't sure if it fits here or in long leasehold Q's...

    I'm in rather unusual situation of owning (on a single long leasehold agreement) a block of Flats which are currently all let on AST's. I would like to transfer ownership/income to my spouse for Tax reasons but would also like to create individual sub-leases in order to regularise the situation and make the individual Flats both saleable & mortgageable. I understand that a simple transfer/gift to my spouse would be free from SDLT & CGT and whilst that is a possibility it doesnt solve the lease problem so I am considering granting long sub-leases(at no cost) to my spouse on each of the individual flats. I have the agreement of the Freeholder but dont understand the TAX situation. Can anybody advise if this would attract SDLT &/or CGT ? or indeed if there is a better way of achieving my goal ? Thanks !

    #2
    There is no cgt for transfers of property from husband to wife or vice versa . If the property is transferred mortgage free ( as a gift), there is not SDLT to pay.

    You need to get quotation from 2 or 3 solicitors experienced in preparing 125 years leases and they will advise what work must be done .

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