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Capital Gains Tax on House Deposits
Ollieuk6
Posts: 1 Newbie
Hi,
Would anyone know if a deposit put down on a house would be liable for capital gains tax when releasing it.
My wife and I our separated. She still lives in the house that I am on there mortgage for.
I am looking to come off the mortgage.
I had a solicitors letter drawn up before we bought the house stating that I put down 10k deposit. She is looking to re mortgaging the house and release the 10k to me. I believe there is an £10,900 allowance before capital gains tax is made.
My question is would a deposit be liable for capital gains tax even if it was more than the allowance?
I am aware on he rules around equity.
Thank you
Would anyone know if a deposit put down on a house would be liable for capital gains tax when releasing it.
My wife and I our separated. She still lives in the house that I am on there mortgage for.
I am looking to come off the mortgage.
I had a solicitors letter drawn up before we bought the house stating that I put down 10k deposit. She is looking to re mortgaging the house and release the 10k to me. I believe there is an £10,900 allowance before capital gains tax is made.
My question is would a deposit be liable for capital gains tax even if it was more than the allowance?
I am aware on he rules around equity.
Thank you
0
Comments
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What gain has been made on the money?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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10k = 10k = no gain
deposit is equity.0 -
you imply you no longer live there - is it more than 18 motnhs since you moved out?
as such then yes you are liable for CGT on any gain you have made BUT the rest of you OP needs further clarification in order to be sure if you have any CGT to pay
you say you are on the mortgage, but what proportion of the house do you own ? is it 50/50 with the ex or is it an unequal split
you say the ex is going to "release" £10k back to you since that is the amount of your contribution to the original deposit. If that is all you are getting from the property then a) you are liable for CGT as it is no longer your main home BUT b) your gain is zero since 10k deposit in = 10k paid out so c) no tax to pay0
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