Hi there,
I have a rental property which is in my name, but considering gifting it to my spouse (he would also gift me a similar value portion of our main house which we hold as tenants in common in unequal shares). He has just been made redundant and will be retraining - likely not earning as much in future so it would benefit us both to have the profits taxed at his basic rate rather than my higher rate. Has anyone else done this and can offer any advice on what we need to consider?
Specific questions:
Would any insurance still be valid or would we need to cancel and take out new insurance?
I am the landlord for the purposes of listing the property on OpenRent - would this need to change?
Would it be a problem for him to also gift me a proportion of our main house - would it no longer be seen as a gift and therefore could there be charges to pay? I understand for a gift between spouses no capital gains or SDLT are payable.
Thank you all for any advice!
The easiest way is to transfer the beneficial interest through a deed of trust. This would need to be drafted by a solicitor unless you can find a template that exactly fits your needs. Once executed, youd register the change with the land registry and finally, you complete and submit HMRC form 17 within 6 weeks I think to change the tax position.
All this should be checked with a solicitor before acting.
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