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Where Taxpayers and Advisers Meet

CGT joint owners

rks2018
Posts:63
Joined:Sun Sep 16, 2018 1:27 pm
CGT joint owners

Postby rks2018 » Sun Sep 16, 2018 1:47 pm

Hope someone can give me some guidance ,
I bought a house back in 2000 but had to buy as joint owner with my sister as I couldnt get amount of mortgage I needed .
in 2002 I decided to move but move , could'nt sell my present property but my mortgage company allowed to me to keep my present property allowing me to
borrow against it to fund new property ( joint ownership again ) . My sister then moved into my 1st property though was'nt always there ( was always between parents due to ill health of parents )
In 2015 decided to rent 1st property ie had a couple of lodgers living with sister . Registered for Self assesment , paying tax ( I am higher rate payer my sister is lower )
Now that I am in a relationship , I want to think about removing my sisters name from both houses ,I will be able to clear both mortgages in 2 yoears time .
My question is , how I calculate cgt on selling 1st house . I'm worried that should anything happen to me I would like the most of share of house to go to my partner so should I
change %of ownership to 99/1 % ( my sister would allow this as shes always been just name on mortgage to help purchase ) ie change tenancy to tenants in common from joint tenancy . Ultimately I would like to remove sisters name from both houses , with probably selling the 1st one .
what ways can I reduce CGT payable on 1st house .?

Thankyou in advance

AGoodman
Posts:1743
Joined:Fri May 16, 2014 3:47 pm

Re: CGT joint owners

Postby AGoodman » Wed Sep 19, 2018 4:10 pm

If your sister has never had any real financial interest in the property (called "beneficial"/"equitable" interest) then it is already 100%/0%. You can record this in a declaration of trust signed by the both of you. As it is only confirming the position, it does not have any tax effects but you should be sure to record that it is reflecting the position from the day of purchase.

rks2018
Posts:63
Joined:Sun Sep 16, 2018 1:27 pm

Re: CGT joint owners

Postby rks2018 » Thu Sep 20, 2018 12:57 pm

Thank you for your reply , May i ask if I file in a declaration of trust as you suggest , then would that mean I would need to
change the way i pay tax ? and also how the CGT payable at time of sale will be ?
Thanks


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