Can I dispose of half share in house?

agrinnall

I would echo the suggestion to post on the Cutting Tax board, which is here http://forums.moneysavingexpert.com/forumdisplay.php?f=22. There are tax experts on there who I've never seen post on this board. And can I also ask that you try to write in proper sentences as I'm finding it quite hard to comprehend some of what you write - I can get the general gist but if you make it clear to start with it's less likely that you'll be asked to clarify things. Finally, I imagine they may want to know if you own another property that you currently live in.

00ec25

MrsPorridge wrote: »

I am in my fifties and have own home with husband.

agrinnall wrote: »

Finally, I imagine they may want to know if you own another property that you currently live in.

to be exempt from CGT on a property you own you have to live there as your main residence , the fact you may only own one property is not relevant if you don't live in it as your main residence (eg you may in fact live elsewhere in rented). Given the OP is asking basic questions i take as read that she has not already made a CGT election to nominate the half owned house so we will ignore that complication as it is now too late to do so.

So, more importantly in this case, OP is married and therefore for the purposes of CGT all married couples are deemed to have the same main residence , so even if she does not own the house she shares with husband, she will still be liable for CGT on the half share as she is not, and can never be, classed as resident (ie able to claim exemption from CGT under Private Residence Relief) in the house currently occupied by her mum

sky111

Thanks.

No mortgage on house paid off before Ihalf was put in my name. House has gone up in value as is in London. Not sure but was bought in the 70's so value will be considerable compared to when it was bought.

Biggest problem is son and ex who may want to remain living there when Mum has gone. I have no relationship with them and do not want to support them and cannot afford upkeep of house. I am in my fifties and have own home with husband.

Am worried about them being sitting tenants and my being responsible for hours and council tax etc.

Mumwill leave her half of house to son.

Force your mother to sell through court. Dont worry about GCT, IT etc as you will end up with some money in the end and don't worry about your mother as council will provide accomodation when her savings are used up. Son will be housed as homeless.

DVardysShadow

MrsPorridge wrote: »

OK thanks for all that. So if we leave it as it is then when mum goes what are my rights for forcing a sale? Will son be liable for CGT and inheritance tax?

Are you sure you son will get your mother's half?

Inheritance tax may be charged on your mother's estate [or not] depending on the estate she leaves. Neither your son nor anyone else will be liable for IHT as inheritors only get anything after IHT is paid. Your son's liability for CGT will only arise if

• he inherits
• and he owns another property which is his primary residence
• and the holds onto his share of this one for long enough not to be exempt
• and there is actually a capital gain big enough to tax

Note that the need to pay IHT form mother's estate may force a sale.

As I see it, if the house is mortgage free, it is an asset which will have enough value to cover any arising liabilities and you should not take disposing of it lightly.