I bought a house with my sister in 2005. We lived in it together from 2005-2010.
In 2010 she moved out, and I bought her out by transferring half the value of the flat to her bank account.
We did not transfer the deeds to avoid mortgage early repayment penalty fees. Unfortunately, we then forgot about it.
At present the flat is un-mortgaged.
I am assuming my sister will honour the fact that I paid her for half the flat.
The flat value has gone up a lot (more than CGT personal allowance thresholds) since I paid her for half the flat.
I am planning on selling the flat and using the full value, plus savings, to buy a house which will be entirely in my name.
Will my sister be liable for CGT?
- I spoke to an accountant, and they said yes she will, as her name is on the deeds and it is no longer her primary residence.
- A solicitor said no she won't, as I own half legally and the other half "in equity".
Is there anything else I need to be aware of?
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