Last updated: 14 October 2026
Can you transfer property to your spouse tax-free?
Yes, for capital gains tax and inheritance tax, as long as you’re married or in a civil partnership and living together. A transfer between spouses is treated as “no gain, no loss”, so the receiving spouse takes over your original cost and no CGT is due now. It’s also exempt from inheritance tax if both are UK domiciled or long-term resident. Stamp duty land tax can still apply if the property has a mortgage and your spouse takes on part of the debt, or if they pay you for the share.
Taxes on a transfer between spouses
| Tax | Treatment |
| CGT | No gain, no loss: no tax now; spouse inherits base cost |
| IHT | Exempt (limited to £325,000 if the recipient isn’t long-term UK resident) |
| SDLT | Due on money paid and mortgage debt taken on, if above threshold |
| Income tax | Rental income split 50:50 for joint owners unless form 17 used |
Why transfer?
- Move rental income to a spouse paying a lower rate
- Use both spouses’ CGT annual exempt amounts and basic rate bands on a later sale
- Balance estates for IHT planning
- Simplify ownership
SDLT on mortgaged property
If you transfer half of a property with a £200,000 mortgage, your spouse is treated as paying £100,000 if they take on half the debt. That’s below the £125,000 standard threshold, but if your spouse already owns another property, higher rates may apply.
Example
Ahmed owns a Manchester buy-to-let worth £280,000, bought for £180,000, with no mortgage. He’s a higher rate taxpayer; his wife Farah is a basic rate taxpayer. He transfers a 75% share to her and they sign a declaration of trust and form 17. No CGT or SDLT is due. Farah pays tax on 75% of the rent at 20%. When they later sell, each uses their own £3,000 exemption, and Farah’s gain may be partly taxed at 18%.
Anti-avoidance
The transfer must be outright and unconditional. If the money from a later sale goes straight back to the transferring spouse, HMRC may argue the gift wasn’t genuine. Keep the money in the recipient’s account.
Separated couples
Since April 2023, separating spouses have up to 3 tax years after the year of separation, or longer under a divorce agreement, for transfers on a no gain, no loss basis.
Common mistakes
- Assuming SDLT never applies
- Forgetting form 17 for income tax
- Not getting lender consent
- Transferring to an unmarried partner, which is a disposal at market value
Records to keep
Keep the transfer deed, declaration of trust, form 17 and any lender consent.
Transferring your main home
If you transfer a share of the home you both live in, private residence relief continues to apply on a later sale. The receiving spouse is also treated as having owned it for the whole period you owned it, so relief isn’t lost by the transfer.
Frequently asked questions
Do I need a solicitor?
Yes, for the land registry transfer.
Does a transfer affect my mortgage?
The lender must approve.
Is a transfer to a fiancé exempt?
No, only once married.
Can I transfer back later?
Yes, on the same basis.
Related: sharing rental income with a partner, removing a name from property deeds and CGT on separation.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with property transfers between spouses. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
