Husband is an addition rate tax payer; wife is a basic rate payer, so makes sense to shift income to wife. They have two buy to let properties.
Buy to let Property A.
Owed in joint names. Value around £800k and a mortgage of around £600k.
I am comfortable with the process of organising the declaration of trust to change beneficial ownership followed by the submission form 17 (within 60 days).
No CGT applicable on transfer. Based on my understanding no stamp duty is applicable as the property is already in joint names, but would like to confirm because ,if the beneficial ownership percentage also applies to the mortgage than , the transfer value may be well over £125k so stamp duty me be due.
Buy to Let Property B
Owned in sole name by Husband. Assuming same value of £800k and a mortgage of £600k.
Same process as above with the transfer to wife under the declaration of trust of trust /form 17 etc.
Again no CGT, but stamp duty would be applicable as wife would be taking over the mortgage. However I would advise that the Wife not to take over the mortgage( if bank allows this) so no stamp duty would be applicable.
It would follow on that in due course when the rental profits are calculated, as W will have no mortgage so no interest to deduct against her share of rental income. The question is, would H be restricted to his % beneficial share of the property or be able to deduct 100%. I think his share would be restricted but would appreciate comments on this.
Thank you in advance