Hypothetical husband / wife loan and security.

[anonymous-user]

I’ll separate the points to see where this can come unstuck:
Maybe someone can say yes/no to each point….

1) wife lends husband large sum

2) wife takes charge on property as security

3) husband defaults and wife claims security

Is this even possible?

[anonymous-user]

Obviously it would be a great way for a property to be transferred to wife without and CGT as it’s viewed as security?

[bmwmike]

I know nothing about this but i'll have a go anyway - aren't they all marital assets or is some sort of prenup involved?

[anonymous-user]

No idea! It’s a property that is in my name only. She had the money in her name only.

[cashmax]

AnotherUsername said:

Obviously it would be a great way for a property to be transferred to wife without and CGT as it’s viewed as security?

Not sure that would work. The charge would mean the wife was obligated to sell the property and pay the loan from the proceeds. The charge holder does not assume ownership of the property at anytime.

[markiii]

No cgt on transfers between spouses anyway

[The Moose]

Does stamp get paid if you repossess a property?

[Mr E]

AnotherUsername said:

No idea! It’s a property that is in my name only. She had the money in her name only.

What are you trying to protect against. Because if the answer is “assets should we split up” then I doubt very much which one of you nominally owns it will make any difference.

If it’s a transfer of property without tax, I don’t know but I don’t think it matters if you’re married.

[Parbold milkperson]

anonymous said:

[redacted]

That's a a good point.
Iis the husband hypothetical?

[Monkeylegend]

Parbold milkperson said:

That's a a good point.
Iis the husband hypothetical?

Read the thread again.

[anonymous-user]

As a legitimate means of not paying CGT.

So IF the wife took property as payment against a loan would CGT be payable upon sale?

[996c2]

AnotherUsername said:

As a legitimate means of not paying CGT.

So IF the wife took property as payment against a loan would CGT be payable upon sale?

According to the government website below, you can gift your property to your spouse without paying CGT. If your wife dispose of it later, she will have to pay CGT based on the price that you had paid for it previously so the CGT is really just deferred.
https://www.gov.uk/capital-gains-tax/gifts

It's not clear if the property is your primary resident. If so, disposal will be free of CGT in anycase.

Your wife will need to pay Stamp Duty if you take payment for the property so it would be best if you gift her the property.

I don't think there is anything to stop her gifting you her money at any point.