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Sam, Accountant
Category: Tax
Satisfied Customers: 7509
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I helped my stepdaughter to buy a flat in 2008 by getting a

Customer Question

I helped my stepdaughter to buy a flat in 2008 by getting a joint mortgage with her as she couldn't raise enough money based on her own income. She lived in the flat and paid all the mortgage herself until a year ago when I paid off the mortgage with some money I had from downsizing the family home. She is now living with her boyfriend and wishes to sell the flat to finance a new home together. We are happy to give her all the proceeds from the flat to help her and her fiance but want to know if we are liable for any capital gains tax. The flat was bought for £186,000 in 2008 and is now under offer for £348,000
Submitted: 1 year ago.
Category: Tax
Expert: replied 1 year ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.

Expert: replied 1 year ago.

Thank you for your question.

If you are a joint owner of the property then this property not being your main residence, your share of the gain would be chargeable to capital gains tax.

She would be able to claim private residence relief against her share of the gain as she was living in the property.

The gain is £162,000.. if the property is owned 50:50 then your share of gain is £82,000. You say you helped her with the deposit and she has paid all the mortgage herself.

Please advise what the split was so to ascertain your share of the gain.

many thanks