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

Sold Half Share BTL to Relative - Settlements Trap ?

Lockwood
Posts:9
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

Hi

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.

pawncob
Posts:5090
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


Return to “Property Taxation”