Payment from sale of Property

Jeremy535897

JPin said:

diystarter7 said:

JPin said:

[Deleted User] said:

JPin said:

[Deleted User] said:

It can be sent to whatever account you like. The fact will remain that each will have a CGT bill based on one third of the chargeable gain. Where the money ends up is irrelevant.

That makes processing it a little easier, the solicitor felt for CGT reasons, he would need to pay it three ways and was adding additional fees to cover this. He also said that it would have to be declared within 30 days, I thought it was 60.

Your solicitor doesn’t seem to know too much in this regard. He is wrong on both counts. Sixty days is correct. The gain is also required to be declared on self-assessment tax returns by each party where full credit will be given for the amount paid under the 60 day declaration.

What about the point above from diystarter? Is there likely to be a problem further down if the tax office asks about payment to one account when it comes to the 3 parties availing from the CGT allowance?

The possible problem I was referring to was having to make clear when asked where the money came from if one or more people are not around to answer the questions or have the capacity. This is unlikely to happen but worth considering
Personally if it our money to be split into three - as it is easier all round ie not risking transferring to the wrong account, possible problems later and down to the solicitor to transfer money x 3 as long as correction account info is given, I go with the 3 way split, all done and dusted.

This also ensures that the other two do not have to chase you etc for the money I'm sure they won't and the solicitor will need their consent to send it to your account

Sorry, but whay are you against the 3 way split and apologies in advance if I've missed the obvious.

Thanks

There are a number of expenses to clear once the transfer is paid, we wanted to clear this down from the pot before doing the 3-way split. Do the tax office investigate the accounts and check subsequent payments?

Unlikely. Either they will do an investigation or it will be accepted (the latter being by far the most likely if the correct sale proceeds are used). This is not the real issue. I would be very cautious. Suppose all the money is paid to one vendor. That vendor is run over by a bus the next day. Have the other two enough funds to pay the tax due without receiving any of the proceeds, which will be tied up in the estate?

[Deleted User]

Jeremy535897 said:

JPin said:

diystarter7 said:

JPin said:

[Deleted User] said:

JPin said:

[Deleted User] said:

It can be sent to whatever account you like. The fact will remain that each will have a CGT bill based on one third of the chargeable gain. Where the money ends up is irrelevant.

That makes processing it a little easier, the solicitor felt for CGT reasons, he would need to pay it three ways and was adding additional fees to cover this. He also said that it would have to be declared within 30 days, I thought it was 60.

Your solicitor doesn’t seem to know too much in this regard. He is wrong on both counts. Sixty days is correct. The gain is also required to be declared on self-assessment tax returns by each party where full credit will be given for the amount paid under the 60 day declaration.

What about the point above from diystarter? Is there likely to be a problem further down if the tax office asks about payment to one account when it comes to the 3 parties availing from the CGT allowance?

The possible problem I was referring to was having to make clear when asked where the money came from if one or more people are not around to answer the questions or have the capacity. This is unlikely to happen but worth considering
Personally if it our money to be split into three - as it is easier all round ie not risking transferring to the wrong account, possible problems later and down to the solicitor to transfer money x 3 as long as correction account info is given, I go with the 3 way split, all done and dusted.

This also ensures that the other two do not have to chase you etc for the money I'm sure they won't and the solicitor will need their consent to send it to your account

Sorry, but whay are you against the 3 way split and apologies in advance if I've missed the obvious.

Thanks

There are a number of expenses to clear once the transfer is paid, we wanted to clear this down from the pot before doing the 3-way split. Do the tax office investigate the accounts and check subsequent payments?

Unlikely. Either they will do an investigation or it will be accepted (the latter being by far the most likely if the correct sale proceeds are used). This is not the real issue. I would be very cautious. Suppose all the money is paid to one vendor. That vendor is run over by a bus the next day. Have the other two enough funds to pay the tax due without receiving any of the proceeds, which will be tied up in the estate?

Yes - that is the issue. It is not that, somehow, HMRC will decide that the property was in the sole name of whatever bank account it ends up in regardless of evidence to the contrary. I think that your suggestion in your first post has some merit.