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My client is a pensioner who has recently remarried. He owns a buy to let property and currently pays higher rate tax on the profits of that property rental (there is no mortgage so interest deductions are not relevant here).
He has read an article in a newspaper that suggested he can transfer 1% of the buy to let property that he currently owns outright to his wife with the desired effect being that they can then submit their tax returns on the basis that the property income is split 50:50 thereby taking advantage of the fact that his wife is a basic rate taxpayer.
Is the article right on the income tax advantage? Are there any capital gains or stamp duty land tax traps that we should be aware of?
Given his age I am also conscious of his intention to leave the property...
