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Transfer of equity - tax?
seventyken
Posts: 12 Forumite
Hi folks. Myself and my ex dividing up two properties between us. One property is worth 60k more than the other so she'll be paying me 30k for my half. She'll be paying stamp duty on this transaction, I wont. (it's her second property) My question are:
This 30k - how does it get taxed from my perspective?
Also, what kind of paperwork should I insist upon before we come to removal of names from deeds etc? How does this sum usually get paid? How do I protect myself, essentially. Its unlikely we'd get to the point where we've done the deeds and mortgages and then she denies all knowledge of this 30k figure but...just in case....
Any more details required, just let me know. Anyone here been in a similar position?
This 30k - how does it get taxed from my perspective?
Also, what kind of paperwork should I insist upon before we come to removal of names from deeds etc? How does this sum usually get paid? How do I protect myself, essentially. Its unlikely we'd get to the point where we've done the deeds and mortgages and then she denies all knowledge of this 30k figure but...just in case....
Any more details required, just let me know. Anyone here been in a similar position?
0
Comments
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If the properties are mortgaged then you can't just go changing the deeds without the consent of the lender(s).
Is the property that you are selling your share in for £30k your only or main residence?0 -
Are you both currently registered as jont owners of both properties?
Are/were you married?
Which is your main residence? The other will be liable to Capital Gains Tax.
Any mortgage(s)?
If this were an amicable agreement then you could simply complete the transfer forms (assuming no mortgages) and she could hand you a cheque. However I detect a lack of trust, so would recommend following the conveyancing process (perhaps skipping the searches and survey) and preparing/Exchanging a contract.
If a mortage is involved this will need paying off and a new one taking out if required.0 -
Leaving a comment for a bump of the thread.
I'm also in a similar position. If she hands over the cheque. Would he be taxed on it?0
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