Tax Implications of Transfer of title of property

[BobbyeinArkansas]

husband owns a property that will be mortgage free next month. Currently BTL.
However we are moving into it and it will become our main residence.

He will transfer the title from his name to both of ours after the mortgage is paid off.

Are there any tax implications, in terms of CGT or SDTL from doing so?

The property is worth around £1.5m and by the time the transfer occurs, will be mortgage free - which I believe means that there will be no tax liability but can anyone confirm either way?

Thanks in advance

Yes there are. Gain further advice. In the future when it is sold it may not be fully free of CGT due to prior BTL status etc etc

Transfers between husband and wife are treated as neither a gain or a loss. ( free of capital gains tax.)

I would take advice from a professional regarding tax upon sale of the residence, length of occupation and quality if occupation are two if the factors which might determine any tax liability.
Do you own other properties and which is your PPP?

From the transfer, mortgage free, H&W transfer-no CGT or sdlt consequences

If it has always been BTL so far then OK to transfer. If it had been his main residence at some point and he transfers an interest to you he would immediately destroy part (probably half) of his tax-free history.

@TargusEasting

If it has always been BTL so far then OK to transfer. If it had been his main residence at some point and he transfers an interest to you he would immediately destroy part (probably half) of his tax-free history.

No he wouldn’t s222(7) TCGA 1992 says exactly the opposite!

Thanks all.
To answer some questions, yes it has previously been his main residence, prior to our marriage.
Aware that at some point CGT will be due when it is sold due to the fact that it has been a BTL property for some years now.

I was more wondering what would be due in the immediate term if he transfers title to both names, mainly in terms of SDLT.
I had read that some SDLT would be due if the property is mortgaged but not if it isn't, which doesn't make a lot of sense to me.
It's currently mortgaged but we plan to pay off the mortgage purely so he can transfer title deed to both of our names without having to pay SDLT, which is really why I asked to make sure that that was indeed correct.

Correct.
No SDLT if the property is mortgage free and a gift.
But you must own in equal shares. If not equal SDLT may be due.

But you must own in equal shares. If not equal SDLT may be due.

That’s not correct either.

Please find an accountant and get proper advice on this

There are so many incorrect posts on this thread

Why do people insist on giving advice when they don't know what they are talking about !

www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#if-the-larger-share-is-given-outright-as-a-gift

[quote Alwayscheerful]www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#if-the-larger-share-is-given-outright-as-a-gift[/quote]
There’s no consideration and no SDLT.

@BritInUS1

Please find an accountant and get proper advice on this

There are so many incorrect posts on this thread

Why do people insist on giving advice when they don't know what they are talking about !

Baffles me.

Thanks @HesGotHisTrombole
You sound like you know what your talking about. May I ask if you are a tax accountant?

The HMRC website is somewhat confusing because the examples seems to all be transfer with mortgage. I’m not seeing anywhere explicitly stating that if a transfer occurs mortgage free that there will be no SDLT to pay.
I have contacted a tax accountant so waiting to hear back. Conscious given the value of the property that if we get this wrong, we could get badly stung.

I am a chartered accountant and chartered tax adviser of 20 years standing (but I could be anyone of course!)

The mortgage is treated as consideration which is why all the examples have it in. If there’s no consideration then there’s no charge.

Thank you. That's really helpful.