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

Discount when buy other person out

Bill31
Posts:49
Joined:Sun Jan 19, 2020 12:32 am
Discount when buy other person out

Postby Bill31 » Thu Dec 30, 2021 11:34 pm

If 2 co owners as tenants in common living in main residence; if one buys the other share out do they apply 15% discount? Or is that only applied on death?

Eg: house value 500k. Half share of whole is 250k. If the other person moves out what can their half share be bought for at true market value? Does it include the 15% discount for co ownership? Or is that only on death?

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Discount when buy other person out

Postby pawncob » Fri Dec 31, 2021 10:55 am

You negotiate a price. No automatic discount.
With a pinch of salt take what I say, but don't exceed your RDA

Bill31
Posts:49
Joined:Sun Jan 19, 2020 12:32 am

Re: Discount when buy other person out

Postby Bill31 » Sat Jan 01, 2022 10:06 am

Ok thanks. So the 15% discount hmrc allows applies only for iht upon someone's death when a Co owner dies?

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Discount when buy other person out

Postby pawncob » Sat Jan 01, 2022 10:49 am

https://www.taxinsider.co.uk/iht-is-your-property-related-ta
With a pinch of salt take what I say, but don't exceed your RDA


Return to “Property Taxation”