CGT liability on sale of property - Beneficial Interest

My wife and I own a rental property as Tenants In Common in equal shares. Our Income Tax liability would be reduced if we complete a Form 17 and my wife becomes the sole beneficiary. If we elect to do that what is the implication for CGT liability in the event we sell the property i.e. if my wife is the sole beneficiary will she have total responsibility for any CGT liability because if that is so I assume she would only have the single CGT allowance and the CGT liability would then be considerably greater? I read somewhere that we could complete another Form 17 immediately prior to the sale of the property to change the beneficial interest back to 50/50 so we could split any CGT liability and each claim the CGT Allowance?

Hi,

If your wife is the sole beneficiary of any income arising, then she would be liable on the whole CGT charge.

The form17 would need to be submitted with a declaration of trust in order for the alternative split to be approved and, or, noted. This can then be altered at any time prior to the sale of the property.

Thank you.