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SDLT on second property & CGT?
mmack
Posts: 5 Forumite
in Cutting tax
Evening,
I own a property with mortgage in sole name.
My partner owns a home with ex partner who vacated property years ago. He has maintained interest free mortgage to date. Ex Partner now wishes to be removed from deeds for return of deposit only (taking no share of capital increase).
I have savings to buy the ex out, BUT my partners earnings insufficient for lender consent to transfer of equity in sole name. I can borrow more so could be added to his mortgage.
I understand that this means we would be liable for SDLT at higher rate as my 2nd property (total value £180k)
BUT on what do we pay the higher rate SDLT - the full property value? Or the 'share' being transferred?
And if we subsequently sell his property am I also liable to CGT? On what gain?
I have read some guides and understand the higher rate tiered SDLT but the descriptor of what's chargeable don't seem to apply to specific circumstance.
I own a property with mortgage in sole name.
My partner owns a home with ex partner who vacated property years ago. He has maintained interest free mortgage to date. Ex Partner now wishes to be removed from deeds for return of deposit only (taking no share of capital increase).
I have savings to buy the ex out, BUT my partners earnings insufficient for lender consent to transfer of equity in sole name. I can borrow more so could be added to his mortgage.
I understand that this means we would be liable for SDLT at higher rate as my 2nd property (total value £180k)
BUT on what do we pay the higher rate SDLT - the full property value? Or the 'share' being transferred?
And if we subsequently sell his property am I also liable to CGT? On what gain?
I have read some guides and understand the higher rate tiered SDLT but the descriptor of what's chargeable don't seem to apply to specific circumstance.
0
Comments
-
Appreciate reply thank you. SDLT now completely clear.
I have to admit on CGT I!!!8217;m still a bit confused. Am I paying on the gain made from ex!!!8217;s (frankly niaive) wish to walk away from capital gain? Or the gain in value from the point I invest, to the point of future sale I.e if we sold relatively quickly = minimal gain?
Property value £180k, I buy 11% share for £20k and take on half a £100k mortgage?
It felt worthwhile scraping together some pennies to sort this as it!!!8217;s ealry days to move in together BUT by the time we!!!8217;ve paid SDLT and CGT I!!!8217;m not sure we benefit much from the ex!!!8217;s desire to take a quick cash exit!0
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