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Where Taxpayers and Advisers Meet

Complicated transfer with mortgage

Joined:Wed Nov 10, 2021 10:14 pm
Complicated transfer with mortgage

Postby Hector1 » Wed Nov 10, 2021 10:35 pm

Bit of an odd one, to dim it down:

Arrangement for last 3 years:
(Husband) lives in house A. Mortgage/deeds 50% (Husband) and 50% (Daughter) names.
(Wife) lives in house B. Mortgage/deeds 100% in (Wife) name.

Additional info: previous to this, all 3 lived in the house A for 15 years as the main and only residence.

Husband and wife not "legally" separated, no deed of separation or anything, but dont have anything to do with each other, consider themselves separated and never met and barely spoke to each other in the last 3 years. Marriage had broken down but neither interested in the hassle with divorce or even separation deed.

The intention is for (Husband) to transfer equity to (Daughter) his 50% remaining share in order for the property to be remortgaged £90,000 (£180,000 value) with his retirement age limit removed. (Husband) has lived here the whole time as main residence however no PPR has ever been selected.

Any ideas if any cgt implications and if I should see an advisor?

Thank you

Joined:Fri May 16, 2014 3:47 pm

Re: Complicated transfer with mortgage

Postby AGoodman » Thu Nov 11, 2021 6:17 pm

If you are the husband and have lived in your home as your main home since acquiring it then it will be subject to PPR relief and any gain on gifting your share should be subject to 100% PPR.

As you are not living with your wife, you can each have a main home for the purposes of PPR relief. The restriction in s.222(6)(a) TCGA 1992 only applies to couples living together.

Joined:Wed Nov 10, 2021 10:14 pm

Re: Complicated transfer with mortgage

Postby Hector1 » Thu Nov 11, 2021 10:53 pm

Thank you for the reply and for the information, that helps a lot and makes sense after looking it up.

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