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Peter Collins
Peter Collins,
Category: Property Law
Satisfied Customers: 7219
Experience:  Barrister at Self Employed
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Peter, If I buy her out of the buy to let property we own

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Hi Peter,
If I buy her out of the buy to let property we own 50/50 that we lived in for approximately 3 years there is a mortgage on it of 118k and it is worth approximately 230k as such if I bought her out of her share would I have to pay capital gains tax and stamp duty as we did live there for a period of time and if yes would she have to pay her share?
What would be capital gains tax if applicable and stamp duty? Thanks

Thank you for your enquiry. I am not working this evening but will pick this up in the morning for you.

I’m sorry that you are going through this. I appreciate that is is important that you find a resolution as soon as possible.

Please note that our discussions on this site are for general information purposes and do not create an lawyer-client relationship. It is always recommended that you consult with a local solicitor for specific legal information. You may receive a phone call request which is from the site, not me, and you may choose to ignore this request.

Please be patient with me as I am generally assisting multiple customers at once and this is an email service, but will I will review your question and respond to you as soon as I can, as your question is very important to me.

There will be, as far as I am aware, a CGT liability on the disposal of her share the BTL, but this is the liability of the person disposing of their share.

The link here allows you to calculate the gain:

https://www.gov.uk/tax-sell-property/work-out-your-gain

As to SDLT, as this is payable on purchase again it may be due on your share.

Honestly though, as we are family lawyers and not HMRC agents, the best bet with these questions is to speak to the HMRC helpline - here: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/stamp-duty-land-tax

They will give you a definitive answer on the tax points.

Thank you again for visiting JustAnswer, please do let me know if you have any additional questions in the future. I am also happy to answer any new questions on other topics that you may have, you can request me by putting “for PLCLEGAL” at the start of the new thread. Best wishes, Peter

Peter Collins and other Property Law Specialists are ready to help you
Customer: replied 13 days ago.
Thank you Peter

My pleasure.

Thank you again for visiting JustAnswer, please do let me know if you have any additional questions in the future. I am also happy to answer any new questions on other topics that you may have, you can request me by putting “for PLCLEGAL” at the start of the new thread. Best wishes, Peter