Capital Gains Tax

[beguilingeyes]

We want to sell my husband's house next year. Is it worth adding my name to the deeds to get the maximum allowance as a couple? are we allowed to do this?

Depends on whether you have any other capital gains from investments? Also the amount of the gain.

You need to check whether you have to have your name actually in the deeds to claim the allowance

You don’t need to. Before or at completion you just need to sign a simple deed of trust which states that your husband is holding the property on trust for the both of you. Your solicitor will be able to do this for you (unless you use a chop shop type firm) as long as it dated the day of completion (or before) it will work for capital gains tax so you will each be able to use your 11k odd yearly allowance

Have you both lived in the house as your main residence throughout? Sometimes the loss of main residence relief can catch you out if you've not lived in it for the entireity of your husband's ownership. At the moment your husband gets full main residence relief for all the years he's lived in it. If half is "gifted" to you, you only get main residence relief for the years you've lived in it, so,say, if he lived it in longer, i.e. before you got together, you'll have less main residence relief on your half so may have a higher CGT liability.

I haven't lived in it at all. It was his main residence when we met and then he moved in with me and rented it out.

What @kazzyhoward said. I'd get some professional advice if you can. The CGT may not be as much as you think if he's used it as his main residence for most of the time he's owned it.

@FlowerOfEvil

You don’t need to. Before or at completion you just need to sign a simple deed of trust which states that your husband is holding the property on trust for the both of you. Your solicitor will be able to do this for you (unless you use a chop shop type firm) as long as it dated the day of completion (or before) it will work for capital gains tax so you will each be able to use your 11k odd yearly allowance

Incorrect. It would need to be before the date of exchange .

@Kazzyhoward

Have you both lived in the house as your main residence throughout? Sometimes the loss of main residence relief can catch you out if you've not lived in it for the entireity of your husband's ownership. At the moment your husband gets full main residence relief for all the years he's lived in it. If half is "gifted" to you, you only get main residence relief for the years you've lived in it, so,say, if he lived it in longer, i.e. before you got together, you'll have less main residence relief on your half so may have a higher CGT liability.

Correct. An inter-spouse transfer would partly destroy the relief built up by the husband.