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Capital Gains Tax? Do I pay?
Legacy_user
Posts: 0 Newbie
Hi community
I own a house with my husband, our primary residence. I am also a tenant in common (with a 98% share) on my mum's house. She is selling her house and buying a new one (with no mortgage). Do I pay Capital Gains Tax on my 98% share?
I do not rent it out to her and it is not a second home - I don't live there and never have.
Thanks
I own a house with my husband, our primary residence. I am also a tenant in common (with a 98% share) on my mum's house. She is selling her house and buying a new one (with no mortgage). Do I pay Capital Gains Tax on my 98% share?
I do not rent it out to her and it is not a second home - I don't live there and never have.
Thanks
0
Comments
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Yes, you do.
Whether or not it is more than £0 depends on the values and dates of ownership0 -
Also. It says on the land registry that it is in a deed of trust of tenants in common. Does this affect it?
The 'profit' could be £60,000 - I have deducted fees and stamp duty.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Also, I have only been on the land registry for 2 months although it has been in trust for 6+ yearsThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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so you own a 98% share of a property that is not your marital home and you therefore obviously are liable for CGT since you cannot live in it, yet apparently think you should get it tax free? dream onAliceMusician wrote: »Also, I have only been on the land registry for 2 months although it has been in trust for 6+ years
what do you mean by "trust"
the taxation of property held in a trust can be a very complex area of tax law. Presumably your mother did this thinking it evaded inheritance tax and protected "her" money from care home fees?
what type of trust is it? it really matters...
i strongly recommend you pay an accountant experienced in trust taxation before you you get it monumentally wrong0 -
Have you been a beneficial owner under the trust for 6+ yrs or have you only come into the picture 2mths ago?AliceMusician wrote: »Also, I have only been on the land registry for 2 months although it has been in trust for 6+ years0 -
AliceMusician wrote: »Also, I have only been on the land registry for 2 months although it has been in trust for 6+ years
Why was this change made just 2 months ago?I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
AliceMusician wrote: »Hi community
I own a house with my husband, our primary residence. I am also a tenant in common (with a 98% share) on my mum's house. She is selling her house and buying a new one (with no mortgage). Do I pay Capital Gains Tax on my 98% share?
I do not rent it out to her and it is not a second home - I don't live there and never have.
Thanks
Or more accurately, you and your mum are selling your jointly owned house and are buying another one.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Check with whoever set this trust up. In one sentence you say you own 98% in another it's owned bya trust. Do you own 98% of the trust perhaps?0
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