capital gains tax on joint ownership

Housey123

Can I please seek some advice on capital gains tax on shared ownership flat?
my mother and I bought a flat in 2009 but only I have lived in it during this time. this flat has been my primary residence therefore whilst she has lived elsewhere. now we are looking to sell this flat so i can move to another flat. will my mother be liable to pay CTG on the gain on her share? is there any way of her avoiding this e.g. selling her portion to me in advance of the sale?

as a secondary issue, if I bought another flat (solely in my name) and kept this existing flat for another few months, will I be liable to pay CTG even if I only have a second residence for a few short months?

Thank you MSE forum for any advice you can shed.

00ec25

mother is liable on her share
there is no way she can avoid that, it is why the tax exists, to ensure those who invest in property and make a gain from it, cannot do so with tax consequences.

and does not matter if you say she only did it to help you. She has ownership, so she expects to get money back from it. her share is her share, the moment it ceases to be her share, is the moment she is liable for CGT on it - she cannot sell it to you "in advance", that is the same as ... err... selling it, and actually is counter productive as her liability would be based on a paper based "market value", which may turn out to be higher than what you physically get when you sell it.

the chances of a second property making a gain in excess of your CGT allowance in the space of a few months is practically non existent

please get up to speed with the basics
https://www.gov.uk/capital-gains-tax

TN1984

I assume your second question refers to whether you will become liable for CGT on the first flat if you buy a second flat before it is sold? You shouldn't do as there is an exemption for the last 18 months of ownership (reducing to 9 from April I believe) on a property that was previously a main residence.

xylophone

as a secondary issue, if I bought another flat (solely in my name) and kept this existing flat for another few months,

Don't forget the extra SDLT (which you would need to reclaim once you had sold your existing property).

https://www.moneyadviceservice.org.uk/en/articles/everything-you-need-to-know-about-stamp-duty

Your mother will need to pay CGT on any gain in excess of her allowance.

https://www.gov.uk/tax-sell-property/work-out-your-gain

Housey123

Thank you for your reply. I meant exactly as you've stated (I wasnt able to edit the post retrospectively to reflect this!). looks like from April onwards I have a 9 month window then following purchase of another in whicn I can avoid me paying any CTG.

[Deleted User]

How is the current property owned? Joint tenants or tenants in common? Was a Deed of Trust set up stating who the beneficial owners of the property are how the property is owned between them?