Capital Gains Tax on a 2nd property

00ec25

sexymax wrote: »

my ex and myself bought our property 30 years ago. she has not lived in it for over 20 years we are lookin to remove her name from the deeds so that I can get a lifetime mortgage. she has been living in a council property all the time. how is she eligible for capital gains tax ? she will not be profiting from any transaction?

i assume you are also hijacking rather than responding to the original post?

what do you mean by "profiting"

she will be eligible for capital gains tax if she gets any money at all in exchange for "giving up" her share of the property

CGT is based on beneficial interest - that means do you get anything if the item is sold.
- If you do, you have a beneficial interest and get taxed on your gain.
- If you don't there is nothing to be taxed.

Also, and perhaps more importantly you say "ex"
ex what? legally married wife? In that case what did the financial settlement say about the ongoing use of the property. Crucially were there children and was a Mesher Order in place? If there was that will greatly reduce the CGT exposure

Hpk76

Thank you for your helpful and totally unjudgemental comments.
My mother was a beneficiary rather than an owner. She had no say in the property; had she had I dare say we wouldn't have had to live on the poverty line for so long. As a single parent with 3 young children (widowed at 33 -heart attack, just in case you wanted to throw in another derogatory presumption) she found herself in a situation where she required housing and a council house, I believe, was deemed suitable.
I have sought advice from an accountant about the amount of CGT, oh wise one, and the calcs are all done. In addition, I have researched myself. I had just hoped to ask advice on behalf of my mum that may benefit her. Apologies.
I have never used a site like this before as I was concerned they may be full of pompous !!!!!....

00ec25

Hpk76 wrote: »

Thank you for your helpful and totally unjudgemental comments.

then I suggest you consider how you words things in future, bearing in mind readers know nothing about you other that what you say and what impression you create with your words ...

Always worked. Never claimed benefit.

a comment utterly irrelevant to your question but implies you think she is being hard done by because she now faces a tax bill. The majority of the UK population have worked and not claimed benefits - it does not need saying unless you see it as making her a cut above others and more worthy of "special" treatment

caveats whereby you can escape CGT

you are asking for ways to escape (aka evade) tax. Again look at the impression that creates compared to simply asking: can the tax liability be legitimately be reduced

grossly unfair

so how is that non judgemental????
You can hardly complain when it is you who used emotive language to start with

I have sought advice from an accountant about the amount of CGT

then my post has helped you by confirming your accountant's advice is correct and your post could have simply sought confirmation of the details of what you have researched and been advised, rather than sounding off about how unfair it is that someone has to pay tax on their profit.

uknick

Hpk76, whilst I have sympathy for your mother's position (young widow, as my mother was in the mid 60s with three children all under 10), how do you think council house rents are subsidised by the council? May I suggest taxes.

Also, if your mother is looking at a £12k tax bill then she must have received about £70k before from the sale.