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The buy to let mortgage fund will be used to buy out my existing standard homeowners mortgage. This has always been just in my name only. Yes my current lender has insisted on replacing this homeowners mortgage with a buy to let one as I am not living at the property any more. I was also hoping to take out a sufficient amount for the mortgage to pay for some repairs to the property but may decide not to if this complicates the issue.
Thanks, ***** ***** As I'm not making a profit, am I legally bound to declare any details of this arrangement to the Inland Revenue?
Ok thanks, ***** ***** to confirm, I have my income tax normally paid under PAYE using my tax code, so in this case I would just need to notify my tax office of the situation so that they could assess it as part of my existing PAYE payment?
Excellent! - just one final thing please: When I sell the property in four years time as instructed by my divorce ruling, I believe I will subject to Captal Gains Tax. The ruling was that my ex recieves 60% of the equity and I recieve 40%, as well as this I have to pay her £15,000 in lue of my pension.
Could you tell me what the CG tax is payable upon please? e.g. is it on the increase in house value from the date on which I moved out of the property until the date upon which the property will be sold? or is it only on the profit I will make during that time? thanks