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Where Taxpayers and Advisers Meet

CGT

Stetur1
Posts:4
Joined:Fri Sep 29, 2017 7:00 pm
CGT

Postby Stetur1 » Fri Sep 29, 2017 7:05 pm

Hi,

I am a British Citizen and live abroad and have been doing so for 10 years. I have a property in the UK with my sister and there is no mortgage on the property and both of us are on the title deed. I would like to remove my name from the title deed but want to know if my sister will have to pay CGT. There is no money changing hands between my sister and me - she is not paying me anything to take my name off.

Can someone please help.

Steve.

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: CGT

Postby Peter D » Sat Sep 30, 2017 12:34 pm

Yes but it is you that will have to pay CGT as it will be deemed that you sold your share at market value. I assume neither of you lived in the property as your prime residence. Regards Peter

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: CGT

Postby maths » Sat Sep 30, 2017 2:04 pm

It is unclear what you are trying to achieve.

As current joint legal owners prima facie you each have a beneficial interest in the property. If this is so then on your removal from the legal title prima facie you would also be then disposing of your beneficial interest to your sister and hence you would have a non-resident CGT charge on any gain (arising post 5 April 2015).

If, however, all that you want is to remove your name from the legal title but retain your beneficial interest then no CGT charge arises.

Also as Peter D raises have either or both of you ever lived in the property.

Stetur1
Posts:4
Joined:Fri Sep 29, 2017 7:00 pm

Re: CGT

Postby Stetur1 » Mon Oct 02, 2017 2:03 pm

Thank you both for your reply.

Let me add some additional content. My sister still lives in the property and it is her primary residence. I used to leave there and it was my primary residence until i moved abroad 10 years ago.

Maths, what do you mean by beneficial interest - sorry if the question is silly? As i said, no on money will be changing hands.

Regards,

Steve

Stetur1
Posts:4
Joined:Fri Sep 29, 2017 7:00 pm

Re: CGT

Postby Stetur1 » Mon Oct 02, 2017 2:06 pm

Just to add. I am a Director in a company based in the UK and pay Self Assessment - does that have an impact on this?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: CGT

Postby AGoodman » Wed Oct 04, 2017 12:31 pm

It sounds as though you are currently the joint owner with your sister and want to give her your half share (deeds are now old hat - registered land is all digital now and the deeds are usually shredded if sent to the Land Registry).

As you are non-resident, you will pay non-resident CGT at 28% on any gain that has accrued since April 2015 (as Maths said).

This means that you have to work out the market value on 5 April 2015 and now. Your gain is one half of the difference. I don't think PPR comes into it as you have not been in residence since 2015.

The tax may be minor but remember that you need to file a NRCGT return online within 30 days of the transfer otherwise there are substantial penalties. This is the case even if there is no tax to pay.

Stetur1
Posts:4
Joined:Fri Sep 29, 2017 7:00 pm

Re: CGT

Postby Stetur1 » Fri Oct 13, 2017 5:02 pm

Sorry for the delay in acknowledging your response - i have been travelling on business and have just got back home.

I am a joint owner with my sister. We will appoint a valuation company to find out the value of the property in 2015 and its current value and then work out the Stamp Duty that will need to be paid.

Thank you all for your response.

Regards,

Stu.


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