Can anyone on the deeds receive the money from a house sale.

nineteen76

My wife and I own our house and a second property outright. 3 years ago we put our son on the deeds for the second property which he lives in. He is looking to sell it in the next year. The question is if the total proceeds from the sale are paid out to him (as one of the owners on the deeds) will he get walloped with tax?

jonesMUFCforever

Did you gift him the second property outright or put him on in addition to your names?
Not sure what the tax rules are if you sell your main home but have not paid anything for it.

If all three of you are on the deeds then all three of you would have to agree to the sale and the tax implications it will bring.

I suggest you consult an accountant for advice.

CLAPTON

If the house is in all three names then:

when you gifted (presumably) a third to your son you became liable for capital gains tax based on one third of the true value of the proprety at the time of transfer. It doesnot matter if money changed hands or not.

If the property is now sold, your son who lives there has no tax liability but you and your wife will have a CGT liability on 2/3 of the capital gain.

It doesn't matter who actually gets the money.