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Selling residential house in Joint names buying new one in my sole name any tax implications?
sukh38
Posts: 115 Forumite
Hi All,
My wife and I own a home with a mortgage - We will be selling and using the whole equity as a deposit for the purchase of our new property but that mortgage will be in my sole name.
(No diverse just decided to do this)
Will there be any additional tax implications for my wife?
I am aware she will need to sign and confirm she is happy, I am just concerned she/we may have to pay tax on it?
My wife and I own a home with a mortgage - We will be selling and using the whole equity as a deposit for the purchase of our new property but that mortgage will be in my sole name.
(No diverse just decided to do this)
Will there be any additional tax implications for my wife?
I am aware she will need to sign and confirm she is happy, I am just concerned she/we may have to pay tax on it?
0
Comments
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No tax issues but a few for a mortgage lender.
She will be contributing to the deposit and residing in the property. A no-no for many lenders. Others insist married couples apply in joint names.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.1 -
Do either of you own any other property, or planning to buy? Is this your main home?sukh38 said:Hi All,
My wife and I own a home with a mortgage - is that also your home?
- We will be selling and using the whole equity as a deposit for the purchase of our new property but that mortgage will be in my sole name.
(No diverse just decided to do this) - why? reason I ask is if there's a particular benefit you're expecting by owning in your sole name which we can advise on...
Will there be any additional tax implications for my wife?
I am aware she will need to sign and confirm she is happy, I am just concerned she/we may have to pay tax on it?
On this transaction alone,- CGT: if its not your main home, then you + wife pay CGT on your respective shares (regardless of any new purchase)
- Stamp duty: you pay normal stamp duty on the purchase price, and the 3% additional if EITHER of you own other property and you're not replacing your main home.
- Inheritance: none as her equity is a gift between a married couple
1 -
Thankskingstreet said:No tax issues but a few for a mortgage lender.
She will be contributing to the deposit and residing in the property. A no-no for many lenders. Others insist married couples apply in joint names.
0 -
This is our main home and I own another BTL property.saajan_12 said:
Do either of you own any other property, or planning to buy? Is this your main home?sukh38 said:Hi All,
My wife and I own a home with a mortgage - is that also your home?
- We will be selling and using the whole equity as a deposit for the purchase of our new property but that mortgage will be in my sole name.
(No diverse just decided to do this) - why? reason I ask is if there's a particular benefit you're expecting by owning in your sole name which we can advise on...
Will there be any additional tax implications for my wife?
I am aware she will need to sign and confirm she is happy, I am just concerned she/we may have to pay tax on it?
On this transaction alone,- CGT: if its not your main home, then you + wife pay CGT on your respective shares (regardless of any new purchase)
- Stamp duty: you pay normal stamp duty on the purchase price, and the 3% additional if EITHER of you own other property and you're not replacing your main home.
- Inheritance: none as her equity is a gift between a married couple
0 -
No tax implications but it's a strange decision. However the motives are your own. I just wonder whether you will actually be achieving whatever those motive are.
1
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