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Where Taxpayers and Advisers Meet

Un married separated joint home owners tax liability

koa67uk
Posts:3
Joined:Thu Mar 18, 2021 10:20 pm
Un married separated joint home owners tax liability

Postby koa67uk » Thu Mar 18, 2021 10:23 pm

I jointly own a home with my ex partner. we were never married.

She has been living in the house for the last 20 years. I left 13 years ago. Our daughter 15 still lives there. I have been living in private rented accommodation all that time. If the house is sold am I liable to CGT on my half of the proceeds?

Thanks.

pawncob
Posts:4697
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Un married separated joint home owners tax liability

Postby pawncob » Fri Mar 19, 2021 11:19 am

Yes you are, subject to PPR exemption for 2001 to 2007.
With a pinch of salt take what I say, but don't exceed your RDA

koa67uk
Posts:3
Joined:Thu Mar 18, 2021 10:20 pm

Re: Un married separated joint home owners tax liability

Postby koa67uk » Fri Mar 19, 2021 12:27 pm

Thanks. Is there anyway of avoiding it?
I've only kept it because my ex partner couldn't afford to buy me out (and still cant) and its the home for my daughter. Could I gift it to my daughter. She is 16 now. I'd rather she had all of it than pay tax on it.
If I did sell it I'd end up giving her most of it to set her up for her adult life, anyway.
Thanks.

pawncob
Posts:4697
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Un married separated joint home owners tax liability

Postby pawncob » Fri Mar 19, 2021 12:44 pm

Gifting to daughter is still a disposal for CGT.
It's too late to avoid it, but tax may be minimal. Figures needed to estimate tax.
With a pinch of salt take what I say, but don't exceed your RDA

koa67uk
Posts:3
Joined:Thu Mar 18, 2021 10:20 pm

Re: Un married separated joint home owners tax liability

Postby koa67uk » Sat Mar 20, 2021 6:36 pm

Thanks again. I so grateful to have found someone with non nonsense answers. Great stuff. But can I unpack a little, just so I'm sure? When you say 'tax will be minimal', do you mean if I gift it to her, or regardless? I mean, does gifting it mean I can minimize CGT somehow? Thanks again.

pawncob
Posts:4697
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Un married separated joint home owners tax liability

Postby pawncob » Sat Mar 20, 2021 7:41 pm

I said tax may be minimal. Without figures it's all guesswork.
With a pinch of salt take what I say, but don't exceed your RDA

maths
Posts:8255
Joined:Wed Aug 06, 2008 3:25 pm

Re: Un married separated joint home owners tax liability

Postby maths » Sat Mar 20, 2021 11:03 pm

A gift to your daughter of your interest as pawncob points out gives rise to the same CGT charge as if you sold your interest to a third party.

You CGT charge is at its simplest is: [Mkt Value of your 50% - original cost of your 50% - £12,000] x 13/20


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