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Where Taxpayers and Advisers Meet

Signing over ownership of Deeds

nathan1
Posts:5
Joined:Wed Mar 18, 2009 6:50 pm
Signing over ownership of Deeds

Postby nathan1 » Wed Mar 18, 2009 7:12 pm

Hello, some 25 years ago my parents bought a Village Post Office and Stores with a friend and all three names are on the deeds. With the mortgage long ago paid for and all three parties past retirement date they have decieded to sell up. The friend has bought a flat outright with savings and has said he will sign over the deeds to my parents to fund the purchase of a property themselves. The property is currently valued at £210,000, their accountants have told them they may be looking at a bill of up to £20,000 in capital gains tax but what tax implications if any are there in the friend "gifting" his third share doing this on his part ?. How much roughly might we be looking at ?

Thanks, Nathan.

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

Re: Signing over ownership of Deeds

Postby Peter D » Wed Mar 18, 2009 7:57 pm

Did any of them live at the store/post office. Regards Peter

nathan1
Posts:5
Joined:Wed Mar 18, 2009 6:50 pm

Re: Signing over ownership of Deeds

Postby nathan1 » Wed Mar 18, 2009 8:21 pm

Hi, yes all three currently live there. the Post Office/Stores is part off the ground floor the rest of the ground floor and first floor is living accomdation. the Post Office/Stores is no more than 25% of the total floor area.

Regards, Nathan.

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

Re: Signing over ownership of Deeds

Postby Peter D » Wed Mar 18, 2009 8:25 pm

Were costs of the 25% of the property claimed against the business, rates, insurance, mortgage interest, maintenance, etc. etc. The residential side of the property does not attract CGT. Regards Peter

nathan1
Posts:5
Joined:Wed Mar 18, 2009 6:50 pm

Re: Signing over ownership of Deeds

Postby nathan1 » Wed Mar 18, 2009 8:40 pm

Hi again, the only costs claimed were the seperate buisness rates and liability insurance. Nothing with regard the the mortgage repairs, gas, lighting, water telephone, council tax etc, etc.

Nathan.

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

Re: Signing over ownership of Deeds

Postby Peter D » Wed Mar 18, 2009 10:59 pm

Seek face to face professional advice but this looks like there may be no CG liability at all, and if there were then the CG allowance may cover that by apportionment of what they claimed as business. Regards Peter


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