I am selling my share of the house to the joint owner - do I have to pay tax on this?

Apple_tree

My friend and I bought a house together in 2016, but recently we decided to go our separate ways. We both agreed that I would sell my share to her, with the amount based on how much money I have put into the house so far (original deposit, mortgage paid so far, building work etc), so I don't consider any of it profit. The solicitor, whom acted on both our behalf when we purchased the place, is now only acting on my friend's behalf - I didn't expect the need to be represented separately as it's all been mutual so far. I really don't want to fork out for legal advise unnecessarily because everything I've been sent looks just sofar. However, I've just been sent a letter to be signed, to say I've opted out of getting legal and tax advice (which is true), and I'm wondering now if I've been naive to think I didn't need to consider the situation in more detail.

csgohan4

you need legal advice but it is your choice to forgo this. If anything happens after the sale, you will only have yourself to blame

Apple_tree

Do you mind telling me what potential implications there are? All the writing so far appears straightforward i.e "you agree to sell your share for the amount of x". I just want to receive the money and move on - I don't want any claim on the property etc.

missile

Most solicitors will offer a free consultation.

IMHO, you would be a fool to sign without seeking professional advice.

Apple_tree

@missile is that in the event I am cheated by my friend? I am now concerned about what the government might want from me (money).

00ec25

have you lived in the property as your only/main home for the entire time you owned it?
if yes there are zero tax implications for you in selling your share to the other (soon to be ex) co-owner
if not there will still be no implications as long as it is less than 18 months since it ceased to be your only/main home

there may be tax implications for the other person since there appears to be an outstanding mortgage on the property. How that is handled may result in the other person having to pay some SDLT, but that all depends on the values involved and won't affect you at all. That should be part of the legal advice they are paying for. You on the other hand don't really need any legal advice of your own - the other person's solicitor is just covering their own A by asking you to sign such a letter.

00ec25

Apple_tree wrote: »

@missile is that in the event I am cheated by my friend? I am now concerned about what the government might want from me (money).

this isn't FB, there is no need to @ anyone
look at the bottom section of each post, there is a box labelled "quote", use that instead if you want to reply to a specific person