AND your spouses interest would not be tax deductible.
...Things to consider:
- Whether the bank will allow you to do it -
- Whether you'll lose a valuable tracker by changing the mortgage ..
- Whether your wife's income level means that your tax bill would be reduced by such a transfer . We are already jointly assessed, so in theory no change i Would think?
- No CGT (or CGT loss) and she would take on your original base cost for her 50% ....
- No gift tax or stamp duty
Why not?
This would tell me that I shouldn't do it as my tax bill will rise?
Interest on a mortgage used to finance the purchase of residential property from a spouse is not allowable. Point 5
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I think that this is anti avoidance where debt free properties where transferred and remortgaged to create an interest charge, in this case the spouse is transferring their interest in the property to the other spouse.
What is the advantage of adding her name to it?
I don't see any, and there are disadvantages.
- Complications if you split up
- She becomes liable for any mortgage shortfall if you get into financial difficulties
- Joint ownership is more complicated for admin purposes - needing two signatories for insurance and legal purposes
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