Becoming tenant in common with my mum,CGT?

Markp1984

Hi, I live with my mum, the house is both our primary residence. it's in England.

As we both put in with the upkeep my mum suggested becoming tenants in common (primarily incase of her future care needs eat up the entire value, though shes not currently infirm in anyway).

If we decided to go ahead with this would it trigger any kind of capital gains tax , she's owned the house since the late 80s and I want to make certain she's not going to be given any nasty surprise by her kind thought for me.

Thank you

Keep_pedalling

No it would not attract CGT is it is her primary residence. As it is also your home you would not be subject to CGT if it was sold in the future.

The main issue I see here is what would happen if you want to buy your own place in the future?

Markp1984

Thanks keep pedalling, do you mean if I purchase my own place it could have a negative effect on owning half of my mum's too (assuming I'm not going into debt doing so- I own a portion of money that's invested currently which could buy a house in the future, though currently undecided as I'm very happy with my mum and have been here sometime). Thanks again

Keep_pedalling

Markp1984 said:

Thanks keep pedalling, do you mean if I purchase my own place it could have a negative effect on owning half of my mum's too (assuming I'm not going into debt doing so- I own a portion of money that's invested currently which could buy a house in the future, though currently undecided as I'm very happy with my mum and have been here sometime). Thanks again

Yes, for starters you would lose your first time buyer status, and assuming you are in England you will pay an additional 5% SDLT as you will be classed as buying a second home. In other parts of the UK the additional tax is 8%. 

Markp1984

Thank you very much, already lost my first time buyer status, but the sdlt is something important. Really appreciate it. 

sheramber

Is there a mortgage on the property?