Partner buying out tax implications

zipp

Hi,

My partner and I have been discussing the possibility of living separately.

We are not married but have a mortgage together.

A Tenancy in Common - he owns Two thirds of the property and I own one third (as per the percentage of payments of our deposits)

If he was to buy me out would I have to pay capital gains tax or any kind of tax on the sum?

We are trying to work out the easiest and most efficient way to work it out between us.

I understand that if we sell the property we would not have to pay any tax as this is our main residence and then we would simply divide the sum.

Any advice much appreciated
Zipp

00ec25

as long as you have both lived in the property for the entire time between date of purchase and date he buys you out neither of you will have tax implications. it is just the same as if you sold it

obviously therefore if one of you moves out, it is no longer their main home and they will face CGT when disposing of their share to the other person. But reality check - you get 18 months after you move out as an "extended" exemption, plus you get £11,700 tax free gain anyway.

No chance at all you will face any CGT bill unless the property is worth multi millions of £

Brightspark87

Stamp duty will Be payable on the sale but that’s him not
You!

00ec25

Brightspark87 wrote: »

Stamp duty will Be payable on the sale but that’s him not
You!

depends on value involved in either cash paid and/or amount of outstanding mortgage