Hi,
I have heard conflicting advice on the follwoing scenario
Friends of mine want to transfer a property (under love and affection rule) which was owned by the male partner as his PPR and then subsequently has let it out after moving in with female.
They want to transfer the IP into the females name at its current value of $350k and she is going to take a 100% loan against the property and claim full tax deductions. The male only owes $200K on it so will therefore receive $150K cash.
He intends to put the $150K cash into the mortgage of his new PPR - BUT this home and the mortgage belongs to the female partner.
Is this allowed? It realy seems to good to be true and if it were allowed wouldnt we all be able to pay off our PPR within 4 years by doing same?
Thanks for your advice and help - tax ruling would be helpful some accountanst saying yes some saying no
I have heard conflicting advice on the follwoing scenario
Friends of mine want to transfer a property (under love and affection rule) which was owned by the male partner as his PPR and then subsequently has let it out after moving in with female.
They want to transfer the IP into the females name at its current value of $350k and she is going to take a 100% loan against the property and claim full tax deductions. The male only owes $200K on it so will therefore receive $150K cash.
He intends to put the $150K cash into the mortgage of his new PPR - BUT this home and the mortgage belongs to the female partner.
Is this allowed? It realy seems to good to be true and if it were allowed wouldnt we all be able to pay off our PPR within 4 years by doing same?
Thanks for your advice and help - tax ruling would be helpful some accountanst saying yes some saying no