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I owned a flat prior to marriage and would like to know if it is possible to add my wifes name to the deeds to maximise the CGT allowance is I sell.

by bratt75 17 April 2012 |

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I am aware that both my wife and I have seperate CGT allowance (I think) and am hopeful that by adding her to the deeds We may be able to claim double CGT allowance on any future sale of the flat.

Any thoughts woould be appreciated.
Thanks.

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MouthyRob posted
Can do it, but sounds as though the timing will make it less useful. What I mean by that is that you can't split the entire gain across both of your allowances, your wife is only allowed to use her allowance to offset half the gain between the time you put her name on the deed and the time you sell (i.e. you can't back-date putting her name on the deeds to the time you bought the flat, and I suspect it's gain was mostly made between then and now).
Posted on 17 April 2012 | Love 0 loves Report
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bratt75 posted
Thanks Rob. I have owned the flat for 18 years and been married for 11years. The mortgage is paid off in 7years and that is the point at which I may sell it. Would this info make it more worthwhile for me to add her name?
Also, do you know how easy it is to add her as joint owner (on the deeds) and more importantly - if this costs a lot?

Thanks again
Posted on 17 April 2012 | Love 0 loves Report
174

JoeEasedale posted
The first answer is wrong. Transfers of assets between spouses are done on the purchase date for the original spouse. So you can indeed get double cgt allowance.

Its easy enough to change ownership. Solicitor is advised and they will register new ownership with land registry. However, you will need the lenders permission if you have a mortgage on the property, and they may want to charge you to change the loan agreement into joint names, which will need doing if there is any borrowing. If wife has negative credit rating then permission might not be readily forthcoming.

If its mortgage free its a doddle.
Posted on 18 April 2012 | Love 0 loves Report
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MikeGG1 posted
Joe is right. Husbands and wives or anyone in a legal partnership can transfer assets of any kind back and forth ad infinitum to maximise their allowances. All transfers assume the original date of purchase.

The only problem is the mortgage as Joe said. And the solicitor's fees of course!

Mike
Posted on 18 April 2012 | Love 0 loves Report