change of name on joint mortgage and capital gains tax

3980

hi all . daughter and partner have split up after buying a house six months ago daughter would like to carry on living in house and i would take on ex,s half of mortgage which i could afford and ex is happy to sign over, now the house needs some work rewireing, new boiler ext. and we would sell in a year or two hopefully make a small profit, would it be libel for gains tax or would the repairs be reductable . it would be daughters main residense but not mine . thanks

paulsin

3980 wrote: »

hi all . daughter and partner have split up after buying a house six months ago daughter would like to carry on living in house and i would take on ex,s half of mortgage which i could afford and ex is happy to sign over, now the house needs some work rewireing, new boiler ext. and we would sell in a year or two hopefully make a small profit, would it be libel for gains tax or would the repairs be reductable . it would be daughters main residense but not mine . thanks

Your daughters share would be excempt yours wouldn't. The repairs would be tax deductable for cgt purposes but only if they occured following the purchase of the house i.e. Rewiring prob needed doing when they bought it so tax man will argue that it was reflected in the price and as such is an improvement. If a window is broken after purchase- cost exempt, if broken day before-not exempt. Harse but that's the tax man.

I think this is right please someone correct me if I'm wrong

edit don't forget you've each got 9.7k allowances on any capital gain 08/09 so the gain would need to be on excess of 10k for your share to be taxable anyway-presuming you have no other taxable gains on that year

hope this helps

getmore4less

Has the mortgage lender allready agreed this is possible?

3980

thanks for the replies , got appointment with bank friday , do you think there could be a problem . thanks paulsin that was nice clear , i think the 9.5 k allowance would just about cover it. cheers