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Property Tax Specialist Required

A friend has recently contacted me as her husband (40% taxpayer) owns a rental property.  She is currently not working and would like to utilise her tax free allowance by having the rental property transferred to her (either in trust or as a gift).  She would like to take professional advice as to the best way to structure such an arrangement.

This is outside my area of expertise so I would welcome contact from any property taxation experts who I may be able to put my friend in touch with.

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06th Dec 2012 15:19

Transfer title

The simplest thing to do is have a solicitor transfer legal title to her. Job done! Transfers between spouses are tax free.

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06th Dec 2012 16:07

There is a complicating factor that there is a mortgage involved in the husband's name, and the couple feel that the mortgage company may not look favourably on transferring the mortgage to the wife. 

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06th Dec 2012 16:19

Declaration of trust

A declaration of trust can be drawn up to change the beneficial ownership to his wife.

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06th Dec 2012 16:21

you also need to consider if

stamp duty will be due given the transfer of 'value' even if done as a gift....if its a joint tenancy then you could do a declaration of trust and reflect the appropriate share in the form 17

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06th Dec 2012 16:30

The OP said the property was in husbands name. Form 17 appears only to apply if in joint names. 

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06th Dec 2012 16:46

oops....getting carried away....

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06th Dec 2012 22:46

Thanks for all the replies.  As I mentioned, this is outside my day to day field of expertise and I have no time to be learning about something new at the moment, so I would like to put my friend in touch with an expert in property taxation who can advise her about her specific circumstances.

Initial thoughts are that the wife could be added to the deeds as a joint owner (which may be an easier way of satisfying the mortgage provider), and then a Declaration of Trust and a Form 17 prepared to transfer beneficial ownership to her.

But I don't have the experience or knowledge to fully understand the implications of this myself - is there anyone out there who does this kind of thing routinely who I can put my friend in touch with?

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