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Where Taxpayers and Advisers Meet

Shared ownership buyout

matt.tempest
Posts: 1
Joined: Tue Sep 15, 2020 5:37 pm

Shared ownership buyout

Postby matt.tempest » Tue Sep 15, 2020 5:54 pm

Hi there

I'm hoping someone can help me. In January 2016, I bought a house with my friend and we have a joint mortgage and we've lived in it ever since. The property is split 50:50 and we have always put the same amount of money in. My housemate has offered to buy me out with his girlfriend which works well for all parties and I'm happy to proceed with the sell of my stake.

We're clear on the steps needed to make this a reality but what I'm interested is if I'll need to pay capital gains tax when the transfer goes through? I'll then look to move in with my girlfriend and will be putting the funds towards buying a new home with her after a short stink of renting whilst we find the right thing.

For clarity, I have resided in the property permanently and have no second homes or properties.

Thanks

bd6759
Posts: 3252
Joined: Sat Feb 01, 2014 3:26 pm

Re: Shared ownership buyout

Postby bd6759 » Tue Sep 15, 2020 9:21 pm

Selling a property that has always been your home, is exempt from CGT. There is no reporting requirement.


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