Moving House and CGT

stephen_2

Hi

Hope someone can answer my question.

Currently i am living with my brother and mother, who both own the house( Mortgage is in their name).
What would the tax implication be if
1. My brother moves out
2. Then all 3 of us buy a new house (I would be paying toward the new house and would be on the mortgage), which myself and my mother would be living in?

Thanks in advance for any help

CLAPTON

do you plan to sell the existing house ?

silvercar

If your brother and mother have lived in the house since first ownership there would be no CGT liability for anyone if it was sold within 3 years of your brother moving out. If the gap between your brother moving out and it being sold was more than three years, he may have a CGT liability, that would increase over time.

If you buy a new house and all 3 of you move out, I presume you are thinking of letting the old house (selling it would incur no tax, provided it has been their home for the whole time). When you come to sell the original house there may be a CGT liability based on how long it hasn't been their home.
This would be reduced by letting relief and their CGT allowances.

If the 3 of you bought a home and your brother never lived in it, on sale he would have a CGT liability.

All assuming there is a GAIN on which to be taxed.