Transfer of equity/CGT

wajoda2002

Good afternoon,

Can anyone help please?

I am currently in the process of re mortgaging my property to remove my husband and add my dad. The broker mentioned CGT but I can’t see anywhere how it works?

Purchase Price £173,000
Current Value £260,000
Re mortgage value £153,000
Transfer of equity amount £19,000(£20,000 cash already paid)

Who will be responsible for paying it? Also, will we need to pay any stamp duty?

Thanks
Joanne

kingstreet

If your husband is disposing of his share of his Primary Personal residence, there is no CGT.

If your father is acquiring a share in a property which won't be his PPR, he may fall-foul of the new SDLT surcharge on second properties. This is based on the consideration changing hands, ie 50% of the existing mortgage.

This should be checked with a solicitor as the rules only change today and I've read nothing about the impact on a TOE. However, I suspect he will have to pay 3% of half the mortgage.

wajoda2002

Ok thank you for your reply. He wont be moving in with me, but this is his only mortgage as he currently rents his property.