Capital gains advice

tstreet

My girlfriend bought her house in 2009 for 224,000 with a deposit of 54,000 so 170,000 mortgage

At the time she could not get a mortgage alone so her mum went on the mortgage with her to get her on the ladder so to speak.

My girlfriend has made all the mortgage payments since and the mortgage amount is 154,000 and is going to sell the house for 300,000.

My girlfriends mum has never lived at the property as she has a house of her own mortgage free.

So the question is will there be any capital gains incurred on the sale of the property?
Can all the proceeds of the sale be paid directly into my girlfriends account?


Let me know if you need anymore information

Thanks in advance
Terry

booksurr

if GF has lived there as her main home all the time since 2009 then no there is no CGT payable

it is easy to show that the mother, although on the mortgage and deeds, is NOT a beneficial owner and therefore has no liability to CGT at all since the full benefit of the property remained with her daughter (unless of course mother is idiotic enough to want money from the sale!!!)
http://www.hmrc.gov.uk/manuals/cgmanual/cg11730.htm

PS deposits and mortgages are irrelevant for CGT, the CGT gain is not how much equity you have but simply how much has the house increased in value by between purchase cost and sale price

tstreet

Thanks for the help.

Mother doesn't want anything from the sale so all should be good

:T