You may be considering transferring property or rental income to your spouse for a variety of reasons. The most likely reason that you would want to do this is because it makes good financial sense for you as a couple. Most significantly, there are often considerable savings to be made in terms of Capital Gains Tax or Inheritance Tax. This may be because one of you pays a lower rate of tax, for example.
How can this be done?
Conveniently, there are a number of different ways you can go about transferring property or rental income to your spouse. Therefore, you can simply choose the method that makes the most sense for your situation.
For example, there is the option of signing a deed of assignment. This is a type of contract which deals with larger transactions such as property or land. Seeking legal advice from experts such as Parachute Law can make the process of drawing up your deed of assignment easy and appropriate for your situation.
Transferring property between married persons can often negate the requirement to pay Capital Gains Tax on the property. Note that this doesn’t apply if you transfer a property to other relations, such as a sibling or a non-married partner.
Alternatively, some people opt to go through a process called a Transfer of Equity. This may apply if one of you owns a property and you wish to add your spouse’s name to the deeds so that you own it together.
For landlords, there’s the option to sever your joint tenancy and have a deed drafted in order to share the rental income for financial purposes.
Stamp Duty
Of course, there is also the option of a straightforward sale and purchase, where one spouse sells the property to the other. This may sometimes occur if a couple divorces, but is not limited to this scenario and therefore may be appropriate for you when transferring property.