Transfer of Equity on first family home - Would CGT apply?

[Mr-Men]

Hi All,

I need some advice.

I am currently re-mortgaging my family home which currently has three people on the deed - myself, my father and my mother. We are all joint owners (so no pre-defined share).

Due to certain circumstances, we have had a very limited number of mortgage offers and this lender has stipulated that the mortgage can only have two applicants and therefore this needs to reflect on the deed accordingly.

For this reason my mother will transfer her equity (no money is changing hands, it is gifted). This will mean only myself and my father will remain joint owners - on the deed and the mortgage.

Would this situation (bearing in mind this is our primary home and none of us own another home) attract CGT?

[Mr-Men]

Also, just to add the home is owned for 16 years, of which my mother has only been on the deed for 5 years.

This is the one and only home we own and is our main residence. I've read about Private Residence Relief since posting - is this something that would apply in my case?

[maths]

Removing your mother from the legal title does not necessary entail any need for her to transfer her beneficial interest in the property unless that is what you all want.

So there would then be no question of any CGT charge.

However, if she is to transfer her beneficial interest to you/husband then a CGT charge may in principle be in point but it would seem that private residence relief would reduce any charge to nil. But there may be an SDLT charge depending upon the numbers involved.