Selling join property

stamas01

Hi all

I purchased my flat a while ago that I am selling now. When I purchased it I had a stipend income so alone I was not qualified to take on a mortgage. Luckily, I had my mother who also lives in the UK and jointly we took out a mortgage so I could buy the flat. Ever since I lived on the property but my mother did not. My mother has never paid a penny toward the mortgage or any upgrade or literally anything. We are currently at the last phase of selling the flat meaning that everything has been agreed upon and in just two days we sell the property. My solicitor told me that no matter what we do they need to split the money equally 50-50 between me and my mother. So even if she agreed to get nothing we could not do it. The problem is that in that case if she gets half the money she will need to pay capital gain tax let alone the hassle to transfer the other half of the money from her account to mine. Is my solicitor right? Is there no way she can willingly decline the money? If so is there any advice on what I could do in this situation?

Thanks,

Tamas Suveges

dimbo61

She has a capital gains allowance of £12,500 
She will have to pay Tax at her rate 18/28% on any profit she has make minus selling costs and buying costs.
Speak to an accountant 

Annisele

Your mother can certainly give you a monetary gift. She can give you a gift of half the equity in the house, if she can afford that. But that has nothing to do with whether she's liable for capital gains tax. If she's disposing of her half share in a property she doesn't live in, she almost certainly is liable - regardless of whether she gives that money to you directly, via the solicitor, or in the form of half a house (without any actual cash changing hands at all). Depending on the amounts involved, and on your mother's other capital gains in the tax year, the final tax bill could be anywhere between nothing and loads. I second the recommendation to speak to an accountant.

SusieT

Was your mother on the deeds as well as the mortgage? If yes, then how was the split if you were tenants in common, or were you joint tenants?