New queries, issue 4607

Inter-spouse transfer

Procedure for gifting an interest in property to a spouse.

I have a client who is a 45% taxpayer who purchased six buy-to-let properties a few years ago in his own name. With rising rents fewer instances of repairs and maintenance and lower interest rates they are producing a significant profit.

Because they were purchased with interest-only mortgages I have advised that he should consider gifting 90% to 95% of the net equity to his spouse whose earnings are between £8 000 and £10 000 a year.

For the gift to be effective I am not sure whether he needs to register this as a deed gift with Land Registry or whether a signed declaration of trust and form 17 would suffice for HMRC purposes.

Advice from taxation readers would be much appreciated.

Query 19 016– Property Owner.

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