Capital gains on buy out from ex girlfriend

[Dutton123]

Hi every one .

I have a bit of a unique situation , so I will post it ,hoping some one can help me out

Thanks in anticipation

I bought a house with my ex girlfriend , about 15 years ago and this was a joint mortgage .

Unfortunately we split up about 8/9 years ago , where upon splitting up I moved out of the house and began renting her brothers house .

Renting was the only option at the time ,because she didn't have the funds to buy me out and I didn't have the funds to put a deposit down .

Recently , her brother has come into some money from a split with his ex and he is going to give me £20k , on her behalf ,as his sisters buy out to me . She will give him the money back ,when their mums house sells later this year and from her half she will give him It back .

I still have my name on the mortgage which I can't get off , I'm not paying for the mortage and never have since we split up and get house hasn't been sold .

My Question is this .

Will I have to pay capital gains tax on the £20 from her brother transferring the money to me on her behalf ,or ,will I be ok .

I've read a few bits about a 18 month clause where I have been out of this house and would have to pay , but also seen items regarding my main residency.

Many thanks

[Dutton123]

Hi every one .

I have a bit of a unique situation , so I will post it ,hoping some one can help me out

Thanks in anticipation

I bought a house with my ex girlfriend , about 15 years ago and this was a joint mortgage .

Unfortunately we split up about 8/9 years ago , where upon splitting up I moved out of the house and began renting her brothers house .

Renting was the only option at the time ,because she didn't have the funds to buy me out and I didn't have the funds to put a deposit down .

Recently , her brother has come into some money from a split with his ex and he is going to give me £20k , on her behalf ,as his sisters buy out to me . She will give him the money back ,when their mums house sells later this year and from her half she will give him It back .

I still have my name on the mortgage which I can't get off , I'm not paying for the mortage and never have since we split up and the house hasn't been sold .

My Question is this .

Will I have to pay capital gains tax on the £20 from her brother transferring the money to me on her behalf ,or ,will I be ok .

I've read a few bits about a 18 month clause where I have been out of this house and would have to pay , but also seen items regarding my main residency.

Many thanks

[pawncob]

You're selling your half share to her brother, so it's a disposal for CGT purposes, but subject to various reliefs.
See:https://www.gov.uk/hmrc-internal-manual ... al/cg65375. Note, this is an illustration. The married/divorce part does not apply to you.

[Dutton123]

Hi there

No I'm not selling my half to him , he's giving me what she owes me and then she's giving it him back

No contacts are being exchanged so I'm a little bit confused with the reply

[Dutton123]

Plus I haven't bought a house I'm still renting

[pawncob]

He's making a gift to you of £20k. You're not disposing of an asset, so no CGT liability. What stops you claiming a half share when the house is sold? Is anything in writing?

[Dutton123]

Absolutely nothing

But I'm not like that and I won't

But the point is valid so thank you for the reply

[pawncob]

But when she sells it, you will become liable to CGT on the disposal of your half even if you don't receive the proceeds.

[Dutton123]

If I don't receive the proceeds ?

Don't understand

So if she sells the house some where along the line , so if her brother gives me the £20k then I'll
Be taxable on the money if the house sells

Can you explain why please

Thankyou

[Dutton123]

Also

I thought gift tax was only up to £3000 a year