I know I can transfer a property to my wife without stamp duty, but can I sell the property to her without stamo duty ?
Why would I want to sell her the property ? The property in question was my PPR for 3 years (bought 6 years ago), rented since. As it currently stands, my CGT liability in the event of a sale would only be 2/6ths of the gain on purchase price. There is a realtively small outstanding mortgage on the property, and a lot of equity. We don't want to sell it, but would like to free up the equity to pay off our current PPR loan. Obviously a simple remortgage has no tax benefits, as the interest on the new loan won't be eligible for offset purposes, but if I could sell it to my wife at market value then the new mortgage taken out on the property would be eligible for offset against income, as this new mortgage would have been used to acquire the property.
I could then pay my CGT due, we could hang onto the house, pay of the mortgage on our PPR, and offset the full mortgage interest on the rental against income.
I revert back to my first question, does the sale to my wife attract stamp duty ? If so it somewaht negates the benefit of the transaction. Presumably thi is open to revenue interpretation ?
Why would I want to sell her the property ? The property in question was my PPR for 3 years (bought 6 years ago), rented since. As it currently stands, my CGT liability in the event of a sale would only be 2/6ths of the gain on purchase price. There is a realtively small outstanding mortgage on the property, and a lot of equity. We don't want to sell it, but would like to free up the equity to pay off our current PPR loan. Obviously a simple remortgage has no tax benefits, as the interest on the new loan won't be eligible for offset purposes, but if I could sell it to my wife at market value then the new mortgage taken out on the property would be eligible for offset against income, as this new mortgage would have been used to acquire the property.
I could then pay my CGT due, we could hang onto the house, pay of the mortgage on our PPR, and offset the full mortgage interest on the rental against income.
I revert back to my first question, does the sale to my wife attract stamp duty ? If so it somewaht negates the benefit of the transaction. Presumably thi is open to revenue interpretation ?