Principal residence Once you own two houses, you have two years to decide which is your ‘principal private residence’. A principal private residence is exempt from Capital Gains Tax implications, so this is a significant decision, and most people choose the property which is expected to rise most in value.

Is SDLT payable on transfers between spouses?

However, Stamp Duty Land Tax is payable on the transfer of property between spouses, based on any consideration given. Normally the property would be gifted, but the share of any share of a mortgage is treated as consideration and SDLT is due based on the normal rates.

Can I transfer half my house to my wife?

Transfers of assets between other persons do not escape capital gains tax. However, because stamp duty land tax is based on ‘consideration’ (effectively the amount paid for the property), it is possible to transfer a property to a spouse, or anyone for that matter, with no stamp duty land tax being payable.

How are property transfers between married couples taxed?

Transfers between married couples are tax free; transfers between unmarried couples are taxed like open market sales. This has important implications when it comes to transferring shares of property. If the reader was married he could transfer, say, half the property to his wife during the current tax year without any tax implications.

Can a married couple sell their property without paying tax?

If the reader was married he could transfer, say, half the property to his wife during the current tax year without any tax implications. The property could then be sold during the current tax year and the spouses could make use of two CGT exemptions.

What happens if I transfer my property to my wife?

If the reader was married he could transfer, say, half the property to his wife during the current tax year without any tax implications. The property could then be sold during the current tax year and the spouses could make use of two CGT exemptions. The tax bill would fall from £5,432 to £2,464: £30,000 – £21,200 x 28% tax = £2,464

Can a spouse be charged capital gains on a property transfer?

Interestingly, this rule only applies to transfers of properties (where the asset is property) between spouses and civil partners. So, if Janet and John had not been married, this anti-avoidance rule wouldn’t have applied (however, nor would the rule that says that the transfer between the two is never chargeable to capital gains tax).