Hi all, My ex wants to buy the house of me and so I am trying to factor in the costs involved. Am I subject to any tax on the profit of the house? Would if it was sold to a third party have attracted stamp duty? Is there any other we should be aware of? Many thanks?
House Buyout Costs?
Apr 07, 2005
3 Replies
Not if it's your principle place of residence (PPR). ie it's not a second/investment home.
If the sale price is £120,000 or more, yes. You may be eligible for Disadvantaged Areas Relief.
Take legal advice to make sure the settlement s a fair deal between you and the ex. ?
The Inland Revenue site is good -
formatting link
formatting link
I hope so.
Daytona
You are subject to capital gains tax on your share (if any) of the profit on the sale. First £8,500 doesnt attract any CGT.
I dont have any professional experience of stamp duty but I am pretty sure you would have to pay stamp duty on the sale if it is over the 0% rate level of £120,000 (designated disadvantaged areas £150,000) whether you sell to your wife or a third party.
I just saw Daytona's reply and I was assuming your ex was living in the house but of course PPR rules may apply depending on when you lived there and in the three years before sale as well as another three years in total for any reason.
Look at this booklet regarding PPR
formatting link
Join the Discussion
Have something to add? Share your thoughts — no account required.
Didn't find your answer?
Ask the community — no account required