TAX TIP OF THE WEEK -If you and your spouse sell a property that is jointly owned, how can you ensure you ensure you do so tax efficiently..

By default the ownership share is split equally between you and your spouse.

As you are both taxed independently, this can mean an inefficient use of allowances and reliefs. For example, if you are a high rate taxpayer and your spouse doesn’t work, the sale will incur more tax at the higher rates.

The good news is that you can if you want to change the ownership share you don’t necessarily have to go through the hassle of a formal transfer at the land registry.

You can create a trust deed transferring a proportion of the beneficial interest in the property to your spouse and lodge this with HMRC before the sale.

Hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist