Inter spouse property transfer

 Client owns a property which was until recently his and his wife’s PPR (now let) however his wife never owned it.   I am proposing a transfer of equitable interest to a 99:1 basis in favour of wife who doesn’t have any income but her husband is an additional rate tax payer.   If the property is sold at a gain however wife will not be able to benefit from any CGT exemption as a consequence of the house being her PPR because any gain will not be accruing in respect of a dwelling which has at some point during her period of ownership been her PPR.  The same applies to residential lettings exemption.  However I cannot see what is to prevent the equitable interest being transferred back to husband prior to a sale to ensure that husband the can benefit from PPR and RLE exemptions.  Would anyone agree or contest that?

 

Thanks

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I agree

gbuckell |
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