Tenants in Common - one party selling part

kend

I hope that I have posted this enquiry on the correct thread.


I own a second property in England as tenants in common (50%/50% equal split) with a family member who lives in the property. They are now in a position to purchase an additional stake in the property to increase their share to 75%. The intention being ownership remains a tenants in common but ownership will then be 75%/25% split.


My question is can part of a property be sold like this and what might the taxation issues be?


Ultimately the family member would like to own 100% of the property.

Tom99

[FONT=Verdana, sans-serif]I imagine you would deal with this via a deed of trust.[/FONT]
[FONT=Verdana, sans-serif]In return for £xyz the parties agree to hold the property in trust and the net sale proceeds split 75% to party A and 25% to party B[/FONT]
[FONT=Verdana, sans-serif]Not sure about any stamp duty payable by party A but for CGT I imagine you would be making a part disposal ie 50% of your interest.[/FONT]

AdrianC

kend wrote: »

I own a second property in England as tenants in common (50%/50% equal split) with a family member who lives in the property. They are now in a position to purchase an additional stake in the property to increase their share to 75%. The intention being ownership remains a tenants in common but ownership will then be 75%/25% split.

My question is can part of a property be sold like this and what might the taxation issues be?

Of course you can agree to change the declared split of ownership between you, and the amount of money that needs to change hands is subject to agreement between you.


It's no different, in that respect, to staircasing on a more formalised shared-ownership.


There may be SDLT implications for them, there may be CGT implications for you.