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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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An unmarried couple (she 65 and he 79) are separating. He has

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An unmarried couple (she 65 and he 79) are separating. He has moved out and they have agreed she will buy out his share of the joint tenancy. The house is worth £180,000 and outstanding mortgage is £20,000. She will pay him £76,000 from savings (£25,000 up front then £4,000 p.a. for 12 years approx). Will either or both be liable to CGT or any other taxes?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

So long as the property has been the main residence of the selling party for the entire period of ownership and they sell their interest in the property within 18 months of moving out there will be no Capital Gains Tax to pay as the gain (if there is a gain) will be covered by principle private residence relief. There will be no CGT or other taxes for the buying party.

HMRC will not accept that the selling party is no longer a joint owner of the property unless their name is ***** ***** the title deeds so they should ensure that they have some security to ensure payment of the instalments.

I hope this helps but let me know if you have any further questions.
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