CGT split for married couples

We are selling a second property and I’ve read we can assign the capital gain to either myself, my wife or split the gain 50/50. My first question is can we split the gain by any percentage which is beneficial to us to minimise the CGT we have to pay? Eg could we split the gain 12 / 88 % to me / my wife as I am close to paying higher rate tax and she is not. What type of document do we need to submit to HMRC to notify this split? Will a simple declaration signed by both of us and a witness do ?

Hi,
You would need to apply for an alternative split prior to any sale taking place.
If the house is jointly onwned you would submit a form 17 and a declaration of trust:
Declare beneficial interests in joint property and income this cannot be applied retrospectively. the split can be in any portion you wish other than the 50/50.
Thank you.

Declaration of Trust? Is it a simple document (signed and dated by both) stating my wife has xx% interest and I have the remaining yy% interest in the property sufficient evidence to accompany form 17 ? Or do I need to get a lawyer to draw something up? Thanks

Hi,

Legistlation demands that Income Tax liability is calculated before capital gains liability is calculated, in every case.  

Where any of the basic rate band remains unused after calculating your Income Tax liability, this balance can be set against the lower rate of capital gains, with any remaining capital gains taxable at the higher rate. If all of the basic rate is applied against Income Tax, then there is no lower rate band available for capital gains. All gains will be taxed at the higher rate.  

Payments into a pension scheme are calculated against Income Tax, extending the basic rate band to tax income at 20% instead of 40%, thus giving tax relief on the pension payments.

Thank you.