Tax (again!)

[Piglet]

I need to transfer some equity in a property to share a CGT liability (avoidance not evasion ) .

My Mortgage is with the C&G and they won't allow me to do a straight transer of equity. They require me to close off the new mortgage and jump through hoops for a new mortgage including legal fees...(tell tell me its a FSA requirement but according to the CML Handbook other lenders seem to still allow the transfer)

Does anyone have any experience of whether the Inland Revenue will accept a Declaration of Trust to enable the CGT sharing to take place?

[Piglet]

The C&G do appear to be using this as an opportunity to sell. I'm going to call the FSA shortly I think and ask their view.

They aren't losing any security - they still have me, they are gaining someone who might pay!!

What's Lifetime Tax?

[Piglet]

Eric Mc said:

Is the other person a spouse?

Yes, new spouse so transfer being done just after marriage.

[Piglet]

Thanks Eric, I'm planning to sell the property in the next tax year, so I need to get the equity transfered to H to spread the CGT using both of our allowances when I sell the place.

C&G won't play ball so I can't do this by means of a transfer - do you know if the Inland Revenue accept a Declaration as Trust as the transfer of ownership to H in this tax year?

[Piglet]

Thanks Lurking - that's my experience so far, I think the C&G are taking the pi&& and trying to sell me a new product!

[Piglet]

Eric Mc said:

And I have to say that IHT and SDLT are not within my normal tax experience either.

It does seem that C&G are being rather obstructive. Why not change to a more flexible mortgage lender?

The SDLT is fine, I've checked that and we are inside the figures. There aren't any immediate IHT issues either.

Eric - I understood that I need to effect the transfer in this tax year if we are to use OH's CGT allowance for this year as well as next years? Is that correct? If so I don't have time to remortgage and sort it...