selling house to son process

cluelessoldf

user1977 said:

But it isn't your residence. You've just told us you haven't resided there since 2019.

It is the only residence I own

CG64470 explains that an individual must have a legal or equitable interest in the residence for it to be a residence within the meaning of s222 TCGA92

This is all very eye opening though and I will research this further. I never expected this to be an issue at all and I thank you for bringing this to my attention. I always thought you need to own two houses for CGT to be applied

Slithery

cluelessoldf said:

I always thought you need to own two houses for CGT to be applied

This has never been the case.

user1977

cluelessoldf said:

user1977 said:

But it isn't your residence. You've just told us you haven't resided there since 2019.

It is the only residence I own

CG64470 explains that an individual must have a legal or equitable interest in the residence for it to be a residence within the meaning of s222 TCGA92

CG66470 literally begins "An individual must have an interest in a dwelling-house used as his residence". You don't currently have a relevant interest in any property which you use as your residence.

canaldumidi

There is perhaps confusion over the meaning/use of the word 'residence'.

The property you own is a 'residence', in that it is a residential property, not a shop or factory.

It is also your residential property in that you own it.

However, it is not your residence, since it is not the place where you live. Your current residence, since 2019, is your partner's property.

cluelessoldf said:

user1977 said:

But it isn't your residence. You've just told us you haven't resided there since 2019.

 I always thought you need to own two houses for CGT to be applied

This is a common misunderstanding. Yes, if you own two properties, then obviously CGT will apply when you sell one of them, if the one you sell is not your 'primary residence'. And only one of them can be your primary residence.

But the primary residence rule also applies if you only own one property. If that property is not your primary residence (eg you rent it out, or leave it empty, and you live elsewhere), then you pay CGT.

Brie

I doubt that any solicitor would ever knowingly be complicit in helping you evade any required taxes.  So best to be upfront and be prepared to pay something.  

As for the £2k still owing.  Is this something your son/ex would settle for you now with the understanding that they would be compensated once you have your money?  Easy enough to have this included in the instructions to the solicitor.