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    • seventyken
    • By seventyken 13th Oct 16, 8:49 AM
    • 10Posts
    • 1Thanks
    Transfer of equity - tax?
    • #1
    • 13th Oct 16, 8:49 AM
    Transfer of equity - tax? 13th Oct 16 at 8:49 AM
    Hi folks. Myself and my ex dividing up two properties between us. One property is worth 60k more than the other so she'll be paying me 30k for my half. She'll be paying stamp duty on this transaction, I wont. (it's her second property) My question are:

    This 30k - how does it get taxed from my perspective?

    Also, what kind of paperwork should I insist upon before we come to removal of names from deeds etc? How does this sum usually get paid? How do I protect myself, essentially. Its unlikely we'd get to the point where we've done the deeds and mortgages and then she denies all knowledge of this 30k figure but...just in case....

    Any more details required, just let me know. Anyone here been in a similar position?
Page 1
    • Pixie5740
    • By Pixie5740 13th Oct 16, 11:53 AM
    • 10,595 Posts
    • 14,568 Thanks
    • #2
    • 13th Oct 16, 11:53 AM
    • #2
    • 13th Oct 16, 11:53 AM
    If the properties are mortgaged then you can't just go changing the deeds without the consent of the lender(s).

    Is the property that you are selling your share in for £30k your only or main residence?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • G_M
    • By G_M 13th Oct 16, 12:06 PM
    • 40,103 Posts
    • 45,811 Thanks
    • #3
    • 13th Oct 16, 12:06 PM
    • #3
    • 13th Oct 16, 12:06 PM
    Are you both currently registered as jont owners of both properties?
    Are/were you married?
    Which is your main residence? The other will be liable to Capital Gains Tax.
    Any mortgage(s)?

    If this were an amicable agreement then you could simply complete the transfer forms (assuming no mortgages) and she could hand you a cheque. However I detect a lack of trust, so would recommend following the conveyancing process (perhaps skipping the searches and survey) and preparing/Exchanging a contract.

    If a mortage is involved this will need paying off and a new one taking out if required.
    • crabbycrabcrab
    • By crabbycrabcrab 14th Oct 16, 10:30 AM
    • 100 Posts
    • 474 Thanks
    • #4
    • 14th Oct 16, 10:30 AM
    • #4
    • 14th Oct 16, 10:30 AM
    Leaving a comment for a bump of the thread.

    I'm also in a similar position. If she hands over the cheque. Would he be taxed on it?
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