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Is it Possible to Transfer Our Property Into My Sole Name on The Basis That I Pay Him £10,000 Settlement?

Question:
My husband has agreed to transfer our property into my sole name on the basis that I pay him £10,000 settlement. Is this a possibility? We are not divorced or commenced proceedings as yet but wanted to sort this out before. He does not want to sell the house and split it.

Arthur Weller Replies: 

For more than one reason this is OK. If you are still living together, there is no capital gains tax (CGT) on transfers between spouses living together. If you are now separated, but only separated after 5 April 09, since you were still living together for a part of the tax year 09-10, there is no CGT on transfers between you in this tax year. If you separated before 6 April 09, then assuming the house was your husband's principal private residence (PPR) until recently, there will be no CGT on him when he transfers the house to you, because any capital gain will be covered by PPR relief. If it is more than three years since he moved out, then there could be some CGT on him on the transfer to you, but this may be covered by his CGT annual exemption (in the current tax year 09-10 this is £10,100).
My husband has agreed to transfer our property into my sole name on the basis that I pay him £10,000 settlement. Is this a possibility? We are not divorced or commenced proceedings as yet but wanted to sort&nbsp
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This question was first printed in Property Tax Insider in November 2009.