transfer of equity capital gains tax will i go to jail worried sick

[pleasedontjudgeme]

Yes ive been foolish i know but at time living a nightmare , should of gained advice i know i fear i may go to jail

Story being about 7 yrs ago

living with partner joint mortgage with children

partner was well into drinking, getting loans and becoming a rather nasty person paraonia etc i was very worried he would get a secured loan he was unpredictable

Anyway decided to go seperate ways, but he refused to sign over house to me, however he said he would add our daughter who was 18yrs old living at home. to title and remove him, so my daughter and i are on title

so one original person myself on one( partner) remove and daughter added

Turned out we where able to do this without consent of mortgage for some reason Northern Rock , still paid mortgage in joint names, he made me complete a TR1 and Ap1 form at land registry. Up until recently we where still paying mortgage in joint names

told no Stamp duty would need to be paid as below threshold however im freaking out years later that CGT should of been paid and HMRC will send me to jail

It since turned out we got back to together, his behaviour was due to a severe mental illness having a severe breakdown which ended up in him being section for a period of time, which now explains his behaviour, still under a psychiatrist now for last 4 years

we have reconciled but moved away from family home , however daughter still lives in the home. i have now become his career

im concerned that i may of needed to pay capital gains tax and may go to jail as have no funds to do so, how will he cope

I have no interest in selling family home and hopefully if he gets better maybe able to relocate back, Daughter is happy enough to remove herself from title and add her father back on

[pawncob]

You haven't made a disposal, so no gain can arise.

[pleasedontjudgeme]

has him not removing himself and adding daughter on classed as disposing or gifting

ive since read if you transfer equity you have private residence relief so no cgt , im so confused

[pawncob]

That's a disposal by him, not you.
If it was his principal private residence then he'll not be liable for any CGT anyway.

[pleasedontjudgeme]

Sorry pawncob im also inquiring about him, as im worried sick this could send him over the top.

its been 7yrs since and not heard anything, im starting to get him back on track, i just know we have been silly in past.

am i right in thinking at a later date if i was to remove myself off deeds then at a later date and just leave daughter on i would be liable for capital gains tax? unless i moved back to the property,

[pawncob]

If it was his PPR as well, he's exempt.
If you dispose in the future, you'll get PPR relief and Letting Relief as well.
Until figures are known I can't advise.

[pleasedontjudgeme]

Thanks for reassuring me i havent done anything wrong,

i dont let the property out.

but i thinking if ever i wanted to give it wholly to daughter, the property i live in at the moment is rented.

so when her father took his name off and added her name, and left my name on at time he was exempt, as it was his PRR
however if i removed my name in future would make me liable, as i aint adding anyone on. As daughter already on, if that makes sense

[SteLacca]

It doesn't matter whether you are bringing in a new party or simply disposing of your interest to your daughter, if you give or sell her your share in the absence of any reliefs it is likely that you will be exposed to capital gains tax. This would be calculated on the difference between your share of the original cost and the market value of your share when the disposal is made (less any allowable deductions, such as original costs of acquisition, costs of disposal and enhancement expenditure, plus whatever private residence relief you have built up during ownership.

Depending on values, it may not be as bad as you think.

Some planning should probably also be considered for inheritance tax if you are planning on gifting your share, since should you pass within seven years a charge to IHT may also arise.

[pleasedontjudgeme]

thanks for that, by my title you can see im a worrier, i worry about anything, especially when its complicated stuff i dont really understand.

im just glad that partner at time was fine in signing his share over as he had PPR and hadnt done anything wrong.

you never know if he was to ever get better we may return to property but to be honest i cant see it happening

i may just decide to leave it in my will, which i suppose i should create