How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5152
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

My husband is buy out an ex wife from a join property with a

This answer was rated:

My husband is buy out an ex wife from a join property with a remortgage. The remortage would have to be a btl mortgage and once he pays her money the house will be transfered to sololy him. When he goes to sell that property I would assume he has to pay cgt as due to it being a btl and the fact we live in my old flat now

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

Customer: replied 4 months ago.
I sent before I finished. My question was can you deduct that lump sum to the ex when calculatoring cgt. Or is there a better way to pay less cgt as we need as much of the profit money for a downpayment to buy house together (e.g he gifts half to be on sale, would we need a legal doc done at time of motgage for this to work.. if possible at all)

Thank you for your question.

If your husband lived in that property for any length of time as his main residence, then that period would be covered by private residence relief and exempt from CGT.

Normally, any gain from sale of property is a chargeable gain. One gets certain reliefs against this gain if the property was main residence.

Any payment your husband makes to his ex to buy her share of the property would be added to this cost price and available to reduce the capital gain.

I hope this is helpful and answers your question.

If you have any other questions,please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and other Tax Specialists are ready to help you

More information on private residence relief is covered here

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2017--2

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.