Client's gain on sale of house they co-own with sister (not primary residence) expected to be £64k net of purchase . Client already maxes their BRT band with £13k salary, rest in dividends. I understand therefore the CGT due will be largely at 40%.
Could sale of loss-making stock market shares be used to offset the gain?
Would it be cost effective for a pre-sale transfer of half the property to their spouse? I believe the spouse would be liable for the full gain (£45k) less their 12k allowance as they cannot offset the property's original purchase cost. As the spouse only has income of £12k, all in dividends, I believe their CGT liability would be mostly at basic rate.