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: 3126
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

27 years ago my wife and I teamed up with her two sisters,

Customer Question

27 years ago my wife and I teamed up with her two sisters, brother and parents to buy a large property where we have since lived successfully and happily as an extended family. The property is our sole residence. It is registered in my brother-in-law’s and his wife’s name, although the five groups originally all made unequal contributions towards the purchase price. We are now selling the property and are near to exchanging contracts. The solicitors acting for my brother-in-law and his wife do not seem to think that there will be a problem with regard to the distribution of funds to the other parties but I wonder whether you could clarify that despite not having title to the property my wife and I and her two sisters will not be liable to capital gains tax once the funds have been distributed. Should an agreement of tenants in common be drawn up before exchange or is evidence of a divorce settlement of one of the parties where mention was made of joint ownership fifteen years ago be enough to prove to the tax authorities that the property has been our joint home since 1987? Many thanks for your help. Martin Baker, York N. Yorks.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello Martin, I'm Keith and happy to help you with your question.
I concur with the opinion of your solicitor. There will be a liability to Capital Gains Tax on the gain made on sale, but as it was a sole of main domestic residence Private Residence Relief (PRR) would apply and this reduces the tax by 100%. The only danger is if those whose names are ***** ***** deeds decide pocket the money and walk away with the cash; then you have a slight problem!
I cannot see any difficulty in selling as it stands, particularly if the solicitor involved is instructed by the registered owners to split the net proceeds as agreed on receipt of moneys from the purchaser.
I do hope I have helped set your mind at rest on this matter.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3126
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

That's very reassuring. Thank you. So:



  1. no need to draw up a Tenants in Common agreement at any time before completion?

  2. will Inland revenue require evidence that this has been our sole residence for the last 27 years?

  3. on receipt of the funds would we need to contact Inland Revenue? or

  4. can we go ahead and use the money to make an offer on another property without fear that IR would make demands at some later stage?


Martin

Expert:  bigduckontax replied 2 years ago.
There will be no demand for moneys Martin. The sale is entitled to PRR which is given automatically.
The Inland Revenue was combined with HM Customs and Excise some years ago to form HMRC.
Please be so kind as to rate me before you leave the Just Answer site.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3126
Experience: FCCA FCMA CGMA ACIS
bigduckontax and 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