Chirag

Private Residents Relief, CGT and Deed of Assignment. Dear HMRC, Thank you for your response. I wish to clarify further on following points CGT and PPR: 7. This contradicts the response provided 2 months ago by HMRC Admin 18 https://community.hmrc.gov.uk/customerforums/cgt/51bb111b-6c6f-ef11-a4e5-000d3a86d651#035b2817-6c6f-ef11-a671-6045bd13c60b Please confirm if the CGT will be due to be paid by wife (100% on sale of this property after the execution of deed of assignment, as I intend to transfer 100% of beneficial interest to her unless she surrenders the deed of assignment or deed of variation is signed by my spouse back to me before such sale. 10. Principal Private Residents Relief (PPR): I bought this current BTL property in Aug-17 in my sole name and previously lived in this property till Aug-20, (36 months) subsequently it was either let out or unoccupied / empty. I bought another property (Flat) in Feb-20 again in sole name and lived in this flat from Sep-20 to date. I was married to my wife in Dec-13. After execution of the deed of assignment (100% beneficial interest to my wife), can PPR relief be claimed for 36months + 9 months as per the current rules and in what share? Thank very much in advance for your help.

Deed of Assignment Dear HMRC, I came across the articles on internet: https://www.samconveyancing.co.uk/news/conveyancing/transfer-rental-income-to-spouse https://www.samconveyancing.co.uk/news/conveyancing/deed-of-assignment-transfer-your-beneficial-interest-in-property-8197 If I transfer 100% of beneficial interest (also known as Equitable interest) on a buy to let residential property in Wales which I legally own in my sole name as a UK higher rate taxpayer with an outstanding mortgage to my spouse (wife) who is a UK basic rate taxpayer. Please confirm if each of the following points are correct and True. Please provide correction if any of the points are misunderstood and false for my situation: 1. There will be no Capital Gain Tax (CGT) payable on execution of this Deed of assignment. 2. There will be no Land Transaction Tax (LTT) payable on execution of this Deed of assignment. 3. As I will still be holding a legal title on the property, the mortgage lender's consent is not required for the Deed of assignment. 4. Form 17 will need to be submitted to HMRC within 60 days of execution of the Deed of assignment. 5. My spouse will be liable for income tax on rental income received for this property on or after the execution of the Deed of assignment. She will be able to deduct all expenses related to the rental property like insurance, maintenance, etc. 6. My Spouse will not be able to claim the mortgage interest expense against the rental income of this property as she will not be on the mortgage deeds and as I, legal owner took the loan out and I will continue to pay the mortgage payments and interest. 7. My spouse will also be liable of CGT if and when the property is sold after the execution of the Deed of assignment unless the assignment is surrendered or deed of variation is signed by my spouse in the future. 8. HMRC does not deem the Deed of assignment to transfer the rental income between married couples as Tax avoidance or tax evasion. 9. We do not need to register deed of assignment as Trust with HMRC’s - Trust Registration Service or Register a Trust as Trustee. Thank very much in advance for your help.