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!
Capital gains tax on house sale
Comments
-
Thanks for help. I suspected as much. I’ll be paying the bill and have kept the money aside.0
-
One interpretation of this is that sister sold the property to the op 16 years ago. The price was the remaining amount on the mortgage. I don’t think the fact that the LR was not changed matters, as sister held the property as bare trustee for the op. The mortgage company might have been surprised if they had found out, but they haven’t lost anything, so probably won’t care now.There’s a difficulty in that there should have been a written agreement or better still a deed of trust. Sales of land in this country do need to be in writing.It may be worth investigating, depending upon how much CGT is involved. It may be possible to document this now, explaining what has happened and what the parties agreed 16 years ago, and this may be worthwhile if there’s a lot of tax involved.No reliance should be placed on the above! Absolutely none, do you hear?0
-
Good point, although the OPs sister was the legal owner it should not be too difficult to argue that the OP was the beneficial owner and therefore PRR applies so the sale is exempt from CGT. Some professional advice required I think.GDB2222 said:One interpretation of this is that sister sold the property to the op 16 years ago. The price was the remaining amount on the mortgage. I don’t think the fact that the LR was not changed matters, as sister held the property as bare trustee for the op. The mortgage company might have been surprised if they had found out, but they haven’t lost anything, so probably won’t care now.There’s a difficulty in that there should have been a written agreement or better still a deed of trust. Sales of land in this country do need to be in writing.It may be worth investigating, depending upon how much CGT is involved. It may be possible to document this now, explaining what has happened and what the parties agreed 16 years ago, and this may be worthwhile if there’s a lot of tax involved.
https://www.taxinsider.co.uk/legal-v-beneficial-ownership-a-taxing-distinction-ta
1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards