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Where Taxpayers and Advisers Meet

Sold Half Share BTL to Relative - Settlements Trap ?

Joined:Fri May 26, 2017 10:32 am
Sold Half Share BTL to Relative - Settlements Trap ?

Postby Lockwood » Tue Jul 05, 2022 8:56 am


I am hoping someone can clear this up for me so I can settle my affairs. I had a joint BTL with a relative. Lease was (and still is ) joint names. I sold my half to my relative at market value. Paid the CGT. A new mortgage was acquired and the property is in her name only. I did not ask for any money for my half of the gain. I understand that would become part of my estate.

The rent is still being paid into the previous joint account, but I have never taken a single penny out of the account and she just leaves the money in the account as well, saving it to pay off the mortgage one day.

I am getting completely confused over the settlements rules s624 - and if I have fallen foul of them I would rather sort matters out now than later. I am getting stressed over the, if there are "conditions" then the income is the settlors. The property was correctly sold, taxes paid, there is no condition that I have imposed or acted out that I have any benefit from the property or income .

Thanks in advance.

Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Sold Half Share BTL to Relative - Settlements Trap ?

Postby pawncob » Tue Jul 05, 2022 10:57 am

There's no settlement, it was a disposal at market value.
Even so, change the joint account to the relative's sole name.
With a pinch of salt take what I say, but don't exceed your RDA

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