How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3132
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

My partner and I are tenants in common and have 66.6%/33.3%

Customer Question

My partner and I are tenants in common and have 66.6%/33.3% split on the equity in my favour. If we sell the house (there's no mortgage) and buy another in my name only, can we purchase a second property in her name (with or without a mortgage) and as she only works P/T can we offset some of the rental income against her tax allowance?
The ultimate goal is that a rented out property would ultimately be there to sell off to give our 2 children (aged 8 and 4) a decent start in life.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.

In a word, yes; no problem. Be careful though of the rental income. It can certainly absorb the balance of her personal allowance. Please remember that when the rented property is ultimately sold any gain will be subject to Capital Gains Tax (CGT), but there would be an entitlement to Lettings Relief (up to 40K) and the Annual Exempt Allowance (11K) which would reduce the gain considerably, with luck!

There is an entitlement to Private Residence Relief at 100% on any gain made on the sale of your existing house so there is no CGT to worry about there. The same pplies to the new purchase as it will be a sole or main domestic residence which she occupies. The gifts between you which will be needed to do these transactions are outside the scope of UK taxation.

I do hope I have helped, please come back to me if you have any follow jup queries.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3132
Experience: FCCA FCMA CGMA ACIS
bigduckontax and 2 other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Hi Keith


 


Just not quite sure if we face an issue with her 33% of the sale of our existing home? What are the implications if upon completion of a sale if:


1. She merely transfers the cash to me?


2. She banks the cash and gives it to me later?


3. She banks the cash and uses some of it as a deposit against a buy to let property in her name?


 


Thanks


AL

Expert:  bigduckontax replied 2 years ago.
Actually AL it doesn't matter the slightest. All the gifts to you are outside the scope of UK taxation so whichever way she plays it the answer is the proverbial lemon!

Personally I would be inclined that she bank the cash and either gives it to you later or use it as a deposit.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3132
Experience: FCCA FCMA CGMA ACIS
bigduckontax and 2 other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions