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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have just sold my house and wish to pay my partners mortgage

Resolved Question:

I have just sold my house and wish to pay my partners mortgage off, I believe my partner will be liable for capital gains tax but wondered how much it will likely be, and will I be taxed the same if I leave it in a savings account of some sort.
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. You don't incur a Capital Gains Tax liability by paying off your own or somebody else's mortgage. CGT is only payable when an asset is sold or gifted. There is no CGT on a gift of cash. Assuming your property was your main home for the whole period of ownership, the gain if you made one will be exempt from CGT under the main residence rules which you can read about here. The gift to your partner (assuming you are not in a civil partnership) will be a potentially exempt transfer for Inheritance Tax purposes which will remain part of your estate for seven years after you make it except for the first £3,000 which will be classed as an exempt gift. Take a look here for more information on gifts and IHT. I hope this helps but let me know if you have any further questions.
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Customer: replied 1 year ago.
Thankyou for your reply, it has given me a lot to think about and has been very helpfull. We now have more idea how to proceed. Again thankyou
Expert:  TonyTax replied 1 year ago.
Thanks and good luck.