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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4360
Experience:  FCCA FCMA CGMA ACIS
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Dear bigduckomtax, My friend owes about £540,000 on a

Resolved Question:

Dear bigduckomtax,
My friend owes about £540,000 on a mortgage. He can no longer make the payments due to unforeseen circumstances.
I would like to continue to make the entire mortgage payments of around £2,000 per month to him in the form of a rental payment whilst residing at the property as tenant and making significant improvements. The only condition I would impose is that any appreciation in the property value whilst I reside there and make said improvements would come to me.
My question is; If in 5 years when I plan to sell at say £800k would I be liable to paying any tax on the imagined 300k at the point of sale?
Submitted: 1 month ago.
Category: Tax
Expert:  bigduckontax replied 1 month ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

How can you sell this property, you do not own it!

Customer: replied 1 month ago.
I noticed that after I sent it. I meant If In 3 to 5 years say when we plan to sell by agreement for say 800k....
Expert:  bigduckontax replied 1 month ago.

You incur no tax liability and the mortgage payments made on his behalf could be recovered from the capital sum without penalty.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 month ago.
Thank you
Expert:  bigduckontax replied 1 month ago.

Delighted to have been of assistance.

Thank you for your support.