Do i pay CGT tax on selling my half of a gifted property to my ex?

Ghengis_Khan

newbie on here so be gentle

I need some tax advice please , any UK accountants out there?

My current situation is i am being bought out of my half of our house by my ex girlfriend , we are not married and we owned an equal 50% legally on paper (although i am accepting a lesser amount as a settlement ) We live in england.

The history is a little complicated if more detail is needed please ask.....

The property was originally owned by my ex and her 2 siblings but was going to be repossesed in 2005 due to outstanding debts, i paid off the debts of 19k to avoid repossesion It was in dire need of renovation and used 20k of my cash to pay the debts and a 25k loan to get it to a mortgageable standard. In 2007 it was gifted to my ex and myself by her 2 siblings so we owned 50% each so i had some security.

We then got a mortgage of 100K in 2007 in joint names to carry on with the renovation and pay off the 25k loan taken out in 2005 in my sole name.

I also did a lot of the work for free prior to this ( whilst living there from 2005 to 2007 i worked on getting the property mortgageable , i only owned it from 2007 until now )

I split with my ex in early 2010 ( not amicably we only speak via solicitor ) and i moved out three months later. I had lived at the property as my only residence since 2005 to 2010 , my ex still lives there and wants to continue living there and buy me out.

She is now in a position to buy me out and pay off the mortgage or take me off it.

Should i have to pay any tax on any money paid to me or does PPR cover me for a gifted property regarding CGT or any other nasty surprises i may have to pay ?

The property is currently valued at 340k after our solicitors had a valuation done by RCIS surveyor (For the change of equity in 2007 there is a mention it was worth approx 280/300k in the documentation from our solicitor but it was never formally valued by anyone back then or at any point up until now )

Outstanding mortgage is approx 96k ( this is to be paid off or have me removed from it)

My agreed payout is 95k ( i am not disputing this )

Any help would be appreciated about tax as i am about to accept her offer but want to know what to expect and any tax implications i may have to live with on the 95k

I intend to put the 95k back immediately into a property if this makes any difference although i doubt it

many thanks in advance

G_K

DVardysShadow

Calls himself Ghegis_Khan and says

Ghengis_Khan wrote: »

newbie on here so be gentle

:rotfl::rotfl::rotfl:

Ghengis_Khan

Your thinking of Genghis Khan , my real name is Ghengis Khan ? Thanks for the help

00ec25

Ghengis_Khan wrote: »

( whilst living there from 2005 to 2007 i worked on getting the property mortgageable , i only owned it from 2007 until now )

I had lived at the property as my only residence since 2005 to 2010 ,

it was your main residence the entire time you owned it, it is therefore exempt from CGT
everything else is irrelevant

CLAPTON

if I understand the situation

to became the owner of 50% of the property in 2007 and lived there until 2010 as your PPR (principal private residence)

as it was your PPR you are entitled to cgt exemption for the last three years plus the period of actual PPR

so no cgt is payable

Ghengis_Khan

Thanks guys i was worrying that the fact the property was gifted and not bought at market value would mean i would have cgt to pay on my settlement as i obviously made a profit.

It was always my home apart from the last two years so i should be covered then by PPR for up to 3 years . I had looked at the HMRC websites but it's nice to hear it from someone else. I'd hate to get a nasty tax surprise.