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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 12960
Experience:  30 years as a practising solicitor.
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Me and my brother own property jointly and he also owns

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Hi. Me and my brother own property jointly and he also owns another property which is rented out and he has been living abroad for 10 years. I am about to sell our joint property which is my home and buy a bigger one which I will be the sole owner. Will i have to pay capital gains tax because he is a joint owner with me?
Assistant: Where are you? It matters because laws vary by location.
Customer: London
Assistant: What steps have you taken so far?
Customer: Nothing yet. My property is on the market for sale and hopefully will sell soon
Assistant: Anything else you want the lawyer to know before I connect you?
Customer: No that should be all
Customer: replied 28 days ago.
We bought the property 6 years ago for £250k and I hope to sell in the region of £365K.

Thanks for your question. You will have no capital gains tax to pay as you have lived in the property and will therefore get private residence relief. Your brother will pay capital gains tax on his share of the gain. I hope that helps. Please leave a positive rating so that I am credited for my time.

Customer: replied 28 days ago.
Thanks. He has no association with the property in terms of having lived here or any bills etc. He is just on the deeds as he initially helped me buy it. Is there any way around me paying the capital gain tax and if not, assuming the profit is £110k what will the gain tax to be paid be roughly?

There is no way round this. What should have happened when you bought, assuming it was possible, was that it should have gone in your name only with him taking a charge on the property as opposed to a share of the title. However it’s too late to do that now. The tax on his share of profit of £55000 is £8674. Note you can also deduct sale, purchase and refurb costs from the profit. I hope that helps. Please leave a positive rating so that I am credited by JustAnswer for my time.

Customer: replied 28 days ago.
Ok thanks. £8674 is it dependant on my brothers earnings. He works and resides abroad but is paid by a UK company circa £80k yearly. As he doesn't live in he UK he obviously doesn't pay tax. Will this affect the amount I pay in capital gains?

If his income was taxable in the UK the CGT would be £12124. As he has no taxable income in the UK the CGT is £8674.

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