We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Inherited house

HousingA
HousingA Posts: 38 Forumite
Sixth Anniversary 10 Posts
in House buying, renting & selling
Hello

My brother and I own a house with a mortgage we both live together 

I inherited my father's house which I intend to live in as my primary residence

I will still be on the mortgage and the deed of my brother's place as by himself he can't get the mortgage but he can afford the monthly payments 

Are there any tax implications ?
What happens if my brother sells his house. Do I have to pay capital gains tax as that house would be my second home but my brother's primary residence ?

Is there any SDLT issues ?

Comments

  • MovingForwards
    MovingForwards Posts: 17,180 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    SDLT for your 2nd house.
    GCT if / when brother sells as it's not your primary residence.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • unforeseen
    unforeseen Posts: 7,464 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    MovingForwards said:
    SDLT for your 2nd house.
    GCT if / when brother sells as it's not your primary residence.
    No SDLT as it is inherited. 
  • MovingForwards
    MovingForwards Posts: 17,180 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    unforeseen said:
    MovingForwards said:
    SDLT for your 2nd house.
    GCT if / when brother sells as it's not your primary residence.
    No SDLT as it is inherited. 
    Even though 1st house is inherited and there's a mortgage, when OP is going for his 2nd and staying on the first? I should have just tagged SDLT 🙈
    Mortgage started 2020, aiming to clear 31/12/2029.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    SDLT is only payable on purchases. Nobody's purchasing anything.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    MovingForwards said:
    unforeseen said:
    MovingForwards said:
    SDLT for your 2nd house.
    GCT if / when brother sells as it's not your primary residence.
    No SDLT as it is inherited. 
    Even though 1st house is inherited and there's a mortgage, when OP is going for his 2nd and staying on the first? I should have just tagged SDLT 🙈
    I read the 1st House is the one they currently live in with the mortgage 

    They are moving onto the 2nd inherited house.


    The OP could transfer(Disposal for CGT with PRR) their beneficial interest in the first house to the brother to avoid the future CGT.
    That could be by gift of debt or payment by brother. 

    (they can still stay as a legal owner and on the mortgage with associated implications) 
  • MovingForwards
    MovingForwards Posts: 17,180 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    Apologies, I misread it as being the other way round for some reason 🙈

    SDLT is payable in some circumstances on the inherited house.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • HousingA
    HousingA Posts: 38 Forumite
    Sixth Anniversary 10 Posts
    getmore4less said:
    MovingForwards said:
    unforeseen said:
    MovingForwards said:
    SDLT for your 2nd house.
    GCT if / when brother sells as it's not your primary residence.
    No SDLT as it is inherited. 
    Even though 1st house is inherited and there's a mortgage, when OP is going for his 2nd and staying on the first? I should have just tagged SDLT 🙈
    I read the 1st House is the one they currently live in with the mortgage 

    They are moving onto the 2nd inherited house.


    The OP could transfer(Disposal for CGT with PRR) their beneficial interest in the first house to the brother to avoid the future CGT.
    That could be by gift of debt or payment by brother. 

    (they can still stay as a legal owner and on the mortgage with associated implications) 
    How would a transfer of beneficial interest work in the house has a mortgage on it ?

★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.3K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.2K Work, Benefits & Business
  • 603.9K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture