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 Sam Your Own Question
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13943
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

I have a concern over Capital Gains Tax. My partner

Resolved Question:

Hello.
I have a concern over Capital Gains Tax. My partner and I (we are not married) have a
property which is used as Buy to Let.
In order to get the Buy to Let, a mortgage was taken out on this property and my name was put on to the title deeds.
I am not sure how this works with CGT. Can you advise please? Am I liable for CGT due to the transfer of title, or are there tax implications only when we sell?
Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question, I am Sam and I am one of the UK tax experts here on Just Answer.
Although I am not sure to what you refer to when you state a mortgage was taken out of this property (I am not sure whether you meant the property you live in or the buy to let) - this does not alter the fact that -
There are only Capital gain tax implications when yous sell OR transfer all/part of the property ownership to anyone else (other than a spouse)
So if this remained in your name, then, at this time, there are no capital gain implications.
Let me know if you require any further assistance.
Thanks
Sam
Customer: replied 2 years ago.
Thanks Sam.So my partner, she is a non spouse, owned the property outright. Effectively, my name was put on the title deeds and this property now remains between us and has done for years. It is a Buy to Let property now.Does this mean she has transferred part of the ownership to me-and what tax implications does this hold.I think that is the issue I don't understand-its complicated for a simple man like me!Thank you
Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
Yes she would have transferred part ownership to you, but was this done whilst this was still her (and your main residence) which then subsequently became a buy to let.
OR
Had this ceased to be her main residence by the time this transfer came about - and was already a buy to let
This will determine whether your partner has a capital gain position (but you will not until such time the property is sold, or your share ever transferred, so I can at least set your mind at rest regarding your tax position )
Thanks
Sam
Customer: replied 2 years ago.
Thanks Sam.Final round..and thank you for this.This was done while it was still her main residence. I am not sure if it was mine at that point. It subsequently became Buy to Let. So the flat was re-mortaged, I was put on the Title Deeds and then she moved out.AndyThe transfer was made at the same time as it ceasing to be
Customer: replied 2 years ago.
Thanks Sam.Final round..and thank you for this.This was done while it was still her main residence. I am not sure if it was mine at that point. It subsequently became Buy to Let. So the flat was re-mortaged, I was put on the Title Deeds and then she moved out.Andy
Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
Then she will have no capital gain to concern herself about, as at the time of the transfer she was living in the property and had been throughout that period of ownership.
Her only capital gain will be at any future sale date to take into account the fact this property was then let out, but the time she lived there plus the last 18 months of ownership will form a partial exemption - plus a consideration for private lettings relief due to the fact she let a property out to tenants that had been at some point her main residence.
And then for you, the fact this was your place of living at the she transferred a share into your name, will mean that from that date to the date you moved out, also forms a partial exemption for that time plus the last 18 months of ownership - and you too will at the time of sale be also due a consideration for private lettings relief.
So at this time (which you wished to establish) neither of you have any capital gains to consider due to the actions of the transfer from her sole name to your joint names.
Thanks
Sam
Customer: replied 2 years ago.
Excellent.Thank you very much!
Expert:  Sam replied 2 years ago.
Hi
You are very welcome
It would be appreciated if you could rate me for the level of service I have provided.
Thanks
Sam
Sam and other Tax Specialists are ready to help you