This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Ownership Transfer - Primary Residence

businessmind
Posts: 8
Joined: Sun Feb 07, 2010 6:33 pm

Ownership Transfer - Primary Residence

Postby businessmind » Mon Oct 23, 2017 7:07 pm

I wonder if someone might be able to advise.

My friend bought the property where she lives now with a former partner in 2014 for £200,000. He did not contribute to the purchase of the property, provide a deposit or make any payment to the mortgage and they separate very soon after the purchase completed. They had signed up for a 3 year fixed rate mortgage which had punitive exit penalties so consequently they entered into a Declaration of Trust to record that when the property was sold her former partner would receive none of the proceeds, with the property Title being updated accordingly.

The fixed period has expired and she will now take on the mortgage (effective a new mortgage) in just her name, remaining with the same bank and accordingly her former partner will need removing from the property Title.

My question will this look like a disposal to another party and what price would be registered? Subsequently are there any stamp duty implications?

maths
Posts: 7594
Joined: Wed Aug 06, 2008 3:25 pm

Re: Ownership Transfer - Primary Residence

Postby maths » Mon Oct 23, 2017 10:03 pm

It would appear that although both names are on the legal title and mortgage you won 100% of the beneficial interest and your partner 0%.

If so, removing his name from the legal title and remortgaging should precipitate no tax consequence be that CGT or SDLT.


Return to “Property Taxation”