CGT - Does my mother have to pay if I sell my house?

[stolonsi]

Hi,

5 years ago I purchased a property which at the time I need my mother to go on the mortgage as my income multiples weren’t enough.
So currently myself and my mother are on the mortgage deeds and property title deeds.

My mother is also on the mortgage and property deeds of her main house which she owns with my father.

Me and my wife now want to sell the house and want have mortgage with myself and my wife, we no longer want my mother on the mortgage. We will use all the proceeds of the sale to contribute to the purchase of the new house.

We are concerned that my mother will be subject to a large capital gains tax bill as the property has increase in value by £140,000 in 5 years.

I have been reading some guidance notes on CGT, and from what I can gather, I am under the impression that my mother had only a legal interest in the property (legal ownership) but no beneficial interest. I paid for all the mortgage payments, and My mother did not put a single penny towards the house.

Can anyone shed any light on this?
It’s a real gamble as the HMRC aren’t giving us definitive answers so it’s a case of hoping and praying!

Many Thanks

[bd6759]

If your mother had no beneficial interest in the property, she had nothing to dispose of, and therefore no possible CGT.