Originally posted by d000hg
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Previously on "Changing ownership split of personally owned BTL prior to sale"
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Originally posted by northernladuk View Post
As circumstances change yes absolutely. Like changing the share structure of a LTD as business requires but it's well known that changing the structure for purely tax reasons is wrong and I would have thought, and showed in my link, is also the case here.
Maybe our (my) experience with aggressive avoidance is making this in to a mountain when it's just a mole hill and everyone does it? Could it be your IFA is like one of those accountants we see on here that tell you to build an office on your property, allow you to put your Porsche through as a company car, change your share holding every month etc?
FYI I can legitimately say our situation has changed and probably we should have done this previously (when my wife started working as initially we set this up based on my contracting income and her being unemployed). No sale has started so I think I just need to get this done ASAP. Although reading more about it, the "beneficial interest" stuff is not recorded on the title deed and in fact it doesn't seem to be recorded anywhere. It's assumed you are joint owners unless you have the paperwork to show otherwise (a deed of trust IIRC). Now I'm struggling to find if the original solicitor ever actually did this - digging through all the emails and paperwork.
We had similar with a house we sold recently; it was bought in my name alone when we first married as my wife had bad debt history but we put something in place that said I couldn't sell it without her agreement. The sale went through in my name and at no point did they ever mention this, I was waiting for them to contact us/her about it but they never did!
I'm a bit surprised this would be a red flag since spouses can legitimately gift things without limit but your link specifically uses the example of spouses so I clearly don't understand that as well as I perhaps should.
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Originally posted by d000hg View PostBut changing the ownership percentages (rather than changing the structure) of a property we already co-own is something you can do as circumstances change as I understand our IFA's advice.
Maybe our (my) experience with aggressive avoidance is making this in to a mountain when it's just a mole hill and everyone does it? Could it be your IFA is like one of those accountants we see on here that tell you to build an office on your property, allow you to put your Porsche through as a company car, change your share holding every month etc? Is the IFA well versed enough in taxation law? He can tell you what is good from money saving but doesn't know the fall out of aggressive avoidance? I dunno.
Eek's link clarifies the point that actually we don't own the property in unequal shares, we just have unequal shares in the "beneficial interest". Which seems a bit like splitting hairs to me but is probably important
I don't know the ins and outs, just strikes me that this is going to make HMRC very unhappy so mentioned it. I'll have to leave you to investigate the details as I don't what the art of the possible is.
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Originally posted by eek View Post
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Originally posted by northernladuk View PostSurely this falls in to aggressive tax avoidance? Changing the ownership structure for no other reason than taxation is a bit of a no no?
https://www.taxrebateservices.co.uk/...ty-to-save-tax
Eek's link clarifies the point that actually we don't own the property in unequal shares, we just have unequal shares in the "beneficial interest". Which seems a bit like splitting hairs to me but is probably important
Last edited by d000hg; 21 June 2022, 13:17.
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Surely this falls in to aggressive tax avoidance? Changing the ownership structure for no other reason than taxation is a bit of a no no?
https://www.taxrebateservices.co.uk/...ty-to-save-tax
One person in a marriage or civil partnership owns a property as a sole owner. The other person in this relationship does not and therefore has not used their capital gains exemption for that tax year. Therefore the couple would be at a financial advantage if they transfer the property into joint ownership before they sell it.
The down side is that HMRC could view this as tax avoidance if it is done too obviously close to the sale of the property. This would make it invalid and leave the couple open to investigation and possible prosecution.
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Changing ownership split of personally owned BTL prior to sale
My wife and I own a BTL property as Tenants in Common in unequal shares. In preparation to selling, I want to change this to equal shares to maximise our CGT allowance. Either to Tenants in Common but 50:50, or to Joint Tenants (not sure if it matters for this purpose).
I don't know what this is called in order to easily get quotes and I'm not sure I explained it well because when I mentioned it as an additional item to two conveyancers who quoted for the sale, one seemed to tell me £50 and the other £1000, but neither seemed like they really understood and I don't think it's that niche.
It should be a simple thing to do, has anyone done similar when selling a BTL for instance?
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