Mortgage help

opinions4u

brighthair wrote: »

for what?!

Assuming your parents each own a third of the property and it isn't their main residence, they will have a capital gains tax liability when the property is sold.

e.g. if you buy the house for £90k (3 x £30k) and sell it for £180k (3 x £60k) they will have to pay tax on the gain.

£60k-£30k = a gain of £30k each. Minus £10k CGT allowance = £20k. Times by 18% tax rate = £3,600 tax bill. £8k if they raise the rate to 40% in next month's budget!

It's a little more complex than that, but the taxman sees their share in the property as an investment, not a home.

brighthair

opinions4u wrote: »

Assuming your parents each own a third of the property and it isn't their main residence, they will have a capital gains tax liability when the property is sold.

e.g. if you buy the house for £90k (3 x £30k) and sell it for £180k (3 x £60k) they will have to pay tax on the gain.

£60k-£30k = a gain of £30k each. Minus £10k CGT allowance = £20k. Times by 18% tax rate = £3,600 tax bill. £8k if they raise the rate to 40% in next month's budget!

It's a little more complex than that, but the taxman sees their share in the property as an investment, not a home.

ah got you. It's a bit more complex than that I guess maybe in my situation, what will probably happen is that the mortgage will just come over to me

Henry_P_Chester

brighthair wrote: »

ah got you. It's a bit more complex than that I guess maybe in my situation, what will probably happen is that the mortgage will just come over to me

There will no CGT at the moment as the property has fallen in value. CGT is only payable on profits

brighthair

opinions4u wrote: »

Transferring an asset (property) can still give rise to a CGT liability.

I'm no expert and would suggest you do a little bit of research on the matter or consider professional advice from an accountant.

sure, we will be doing. Basically the mortgage is in all our names but my parents pay. We have a few options - eitther my parents keep the mortgage, and I rent it from them. We sell it, and I move elsewhere. The mortgage gets transferred into my name, and I pay