I wonder if someone can tell me what the tax position would be for the following?
My wife and I own (as joint tenants) a house which we let. It was once our home. There is no mortgage on it.
We would like that my wife take out a buy-to-let mortgage and for her to 'buy out' my share of the house and for her to become the sole owner of it.
Can anyone tell me:
1) Would this trigger a CGT liability?
2) Would stamp duty payable on such a transaction?
Thank you to anyone who can advise.
http://www.hmrc.gov.uk/manuals/cgmanual/cg22200.htm seems to apply,
which seems to suggest that there will be no immediate liability, but
there is likely to be a correspondingly greater liability when she sells it.
It does suggest to me that you will have to submit a tax return and fill
in the CGT pages, as, although there may be no tax payable, the size of
the transaction is likely to be sufficient to trigger a reporting
http://www.taxcafe.co.uk/resources/stampdutytrap.html confirms the above
and suggests the answer to the (2) is yes. However, that probably
depends on whether she is really buying out. You should probably ask
the solicitor who is doing the conveyancing. I don't think there is
going to be enough here to answer this and it is likely to hinge on what
the HMRC consider to be a gift.
On Monday, October 26, 2015 at 11:58:06 AM UTC, David Woolley wrote:
our home. There is no mortgage on it.
o 'buy out' my share of the house and for her to become the sole owner of i
Thank you for your helpful reply, and for the links. In this case it is de
finitely not a gift; she is actually going to buy my share of the house. I
t is likely, however, the the price she will pay for my share (the 'conside
ration') will be below £250k so it might be below the SDLT threshold.
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