transfer of property title from single to joint ownership with spouse

D

dingoxh

Registered User
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30
Hi,
I have an apartment in my own name that I lived in before I met my spouse. We subsequently married and bought a family home together. The apartment is now rented out as we are trying to trade our way out of negative equity.

I have been think to change the title on this property from individual ownership to joint with my spouse.

Are there any tax implications on doing this for my spouse now or in the future? We are jointly assessed for income tax purposes.

Thanks in advance if you can help.
 
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

- No CGT (or CGT loss) and she would take on your original base cost for her 50%

- No gift tax or stamp duty
 
Gordon Gekko said:
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
Click to expand...
...


(1) Bank will allow us to do it.
(2) Interest rate not affected by transfer of title.
(3) We are already jointly assessed for tax so in theory no change I would have thought.
(4) Great news about no CGT issues
(5) Great news about no stamp duty or gift tax.

I beginnning to wonder is it really worth the hassle...........................
 
Interest on a mortgage used to finance the purchase of residential property from a spouse is not allowable. Point 5

[broken link removed]

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
 
Joe_90 said:
Interest on a mortgage used to finance the purchase of residential property from a spouse is not allowable. Point 5

[broken link removed]

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.
Click to expand...

Interesting.

I wonder whether they're joint tenants in "normal" circumstances and whether that solves this anti-avoidance issue?

It's clearly there to prevent abuse rather than to block innocent stuff.
 
Brendan Burgess said:
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
Click to expand...

I think Brendan you have help me answer the question with your concise points on why it is not a good idea leaving aside the the tax question.

Thank you
 
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