Hi,
By adding your son to the deeds, you are gifting him a share of the properties. You may find that you have capital gains tax to pay on the gifts.
Private residence relief may offset any gains on your main residence, but not the rental property.
Your mortgage position of either property is not relevant for capital gains purposes.
As both you and your wife are the beneficial owners of the rental income, you would both continue to declare the rental income.
Please have a look a the guidance at
Tax when you sell your home, which includes a calculator and a link to register for a capital gains account.
Please also have a look at helpsheet HS283 (
HS283 Private Residence Relief (2024) Updated 6 April 2024).
Please note if a gain arises, you have 60 days from the completion date, to report and pay the capital gains tax.
Thank you.