• Joint Ownership Problem.

    By Guest on 28th Apr 2023

    Hi,

    I was hoping you could give me some advice on my situation.

    I purchased a property with my daughter in 2016. She was only 19 at the time and it was easier if we got a joint mortgage but I had to go on the deeds as a joint owner.

    This is my daughters house, I didn’t live there as I had my own property, she lives there and pays the mortgage and bills herself. I am basically a part owner in name only for mortgage purposes.

    We paid £115000 for the house and are in the process of selling it for £150000 so there is a profit of £35000. All of this profit will be used as equity and put into my daughters next house purchase.

    My problem is that as a joint owner I think I am liable for capital gains tax. Even though this is not my house and I will not benefitted or profit from the sale in any way.

    Am I correct in thinking that I am liable for CGT and if so is there anything I can do to reduce or avoid paying this money. It is especially annoying as we paid full stamp duty on the purchase because though my daughter was a first time buyer, and the purchase price was below the lower limit, I owned my own property.

    I have thought about removing my name from the deeds, or doing a tenancy in common with a ratio of 99% to her and 1% to me. Would this work, is it legal and would I incur other taxes such as stamp duty?

    Owners – 2
    Value - £150000
    Postcode – TS56BB
    Property is freehold
    It is not subject to Islamic mortgage.

    Kind regards
    Dean Harker
    [email protected]
    Tel - 07763828179

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