Have a Holiday courtesy of the tax man part 2

Last week, we discussed some ideas about paying less tax by using a partner. So this week, I thought I'd continue the theme and make a few relevant points.

What if your partner does generate some income too? It doesn't matter, as long as they pay in a LOWER tax band, then their are still savings to be made.

If you think you can exploit this information, but have already bought in your (sole) name, then you still do something about it. It will cost about £300-£400 pounds to have the property transferred into multiple ownership. What prevents people from doing it are;

a/ they don't know it's possible and

b/ they think it's a long and complicated process.

Here are the two simple steps you need to follow;

a/ Contact your mortgage lender and tell them why you want to transfer. you will get new mortgage forms to complete. Normally, it will be transferred on the same terms as the original mortgage, but if your interest rate has gone down, then be cheeky and ask if you can continue with the new rate.

b/ Contact your solicitor when your mortgage has been approved and they can have all the relevant documents changed into joint/multiple names very quickly.

Lastly, a partnership will benefit you when it comes to selling a property.

Each owner will be able to use their own personal CGT allowance. This means that if a husband and wife own a property jointly, then they can reduce any CGT liability by a minimum of £19,200 as the current CGT allowance for 2008/2009 is £9,600 (£9,600 x 2)

Again, I can't take any phone calls on this subject, but if you have any CGT related matters, please email helpdesk@taxrefundmoney.co.uk. Also, we have a 'CGT Winners & Losers' chart. If you'd like a copy, contact the same email address with subject matter CGT CHART.