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Posted Thu, 12 Oct 2023 22:49:54 GMT by
I have assigned 50% of investment property previously owned by myself solely to my wife, recently, via deed of trust. Form 17 was not required given this is not an unequal share of the property and nor is it a change in the split after owning jointly. I did not change the mortgage to reflect the change in beneficial ownership, as it was not required by the bank and because I am frankly very happy keeping 100% of the mortgage liability rather than my wife assuming 50% of it. The deed of trust made this clear. We did not incur any stamp duty land tax on the transfer to my wife, on the advice from an HMRC SDLT agent over the phone, that as consideration was not changing hands (neither cash changed hands, nor did my wife inheriting a share of the mortgage liability). We have now got the opportunity to sell the property onwards to our own Ltd company. Clearly we will incur capital gains on the transfer to the extent there is a gain, and the company will owe SDLT. The question re CGT is whether the steps mentioned above trigger the equal sharing of any gain or loss between myself and my wife. My view is that given the deed of trust declaration, the CGT is also divided per the declaration at 50:50. Thank you
Posted Tue, 17 Oct 2023 15:13:46 GMT by HMRC Admin 10 Response
Hi
On the basis of the information provided, I agree that the CGT liability should be split 50:50 between yourself and your wife.
CG22020 refers:  
Transfer of assets: spouses or civil partners: jointly held assets

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