Inter spouse property transfer

Inter spouse property transfer

Didn't find your answer?

 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

Replies (1)

Please login or register to join the discussion.

By gbuckell
24th Apr 2012 11:42

I agree

Remember you will need a form 17 election to tax the income in line with beneficial ownership rather than the default 50:50.

Thanks (0)