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Where Taxpayers and Advisers Meet

Do we have to pay capital gains tax

Babsy
Posts:1
Joined:Wed Jun 21, 2017 12:38 pm
Do we have to pay capital gains tax

Postby Babsy » Wed Jun 21, 2017 12:48 pm

In August 2001 I obtained a mortgage to purchase my council home that I had lived in for 25 years it had to be a joint mortgage with my son as I didn't qualify for a mortgage on my income, although I have always paid all the monthly repayments. In 2006 my son moved out and bought a flat, I am now retired and selling the home to buy something more manageable, obviously none of the proceeds of the sale will go to my son as he didn't contribute to the mortgage, I've now been told cgt could be payable is this right? Any help would be appreciated.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Do we have to pay capital gains tax

Postby pawncob » Wed Jun 21, 2017 3:26 pm

It depends on who owned the house. If it was joint, then your son may have to pay CGT on the disposal of his share. His PPR is presumably his new flat.
If it was in your sole name then it's exempt as it's your Principal Private Residence.
With a pinch of salt take what I say, but don't exceed your RDA

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Do we have to pay capital gains tax

Postby bd6759 » Thu Jun 22, 2017 9:55 pm

Clearly your son had no beneficial interest in the property. He did not contribute to the cost and will not benefit from the sale. There wil be no CGT consequences.


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