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 TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16451
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I was wondering if you could answer my question? I purchased

This answer was rated:

Hi there I was wondering if you could answer my question? I purchased a property with my mother with the right to buy scheme. Now we are joint tenancy owners, but I would like to buy my own place to live in. My mother still will be living in the joint owned property, but If she becomes poorly and we sell the jointly owned property. will any one of the jointly owners pay capital gains tax? Because only one of us have been living in the property?
Assistant: Where are you? It matters because laws vary by location.
Customer: I live in Lincolnshire england
Assistant: What steps have you taken so far?
Customer: Well I’m I’m progress of buying the second property. But this may change my mind if I got to pay capital gains tax on the jointly owned property?
Assistant: Anything else you want the lawyer to know before I connect you?
Customer: I think need a solicitor not a lawyer on my question?
Customer: replied 6 months ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

An individual can only have one main home at any one time. When you buy a new property on your own, you will have two years to make an election for one of the properties to be treated as your main home for CGT purposes to avoid having HMRC make it for you based on the facts, ie where you are actually living.

If you decided to elect that the property that you share with your mother is to be treated as your main home then, for as long as that is the case, any gain you make from selling the new property would be subject to CGT. If you sold the property you own with your mother first, then your new property will become your main home by default from that point. If that happens in, say five years, then the first five years worth of gain as a proportion of the whole gain you may make on a subsequent sale of the new property would be subject to CGT. You need to consider what your medium to long term plans are. If you think that you will live in the new property for the rest of your life, then it would make sense to elect for your current home to be treated as your main home as CGT will never be an issue with a property that you don't intend to sell one day. You can change the election at any time.

I hope this helps but let me know if you have any further questions.

Customer: replied 6 months ago.
My mother gonna stay living in the shared property, she would not have to pay cgt because thats her main home?
In the second property I would not have to pay cgt because that’s gonna be my main home as well?
But my shared half of the property I would have to pay cgt? Is that correct??
We both gonna be living in our main homes for long term.

Your mother would not have to pay CGT so long as the property is her main home.

As I said in my answer, you would have to make an election to choose which of the two properties is your main home to avoid HMRC making that decision. Many people make the decision based on which property is likely to be sold first or have the larger capital gain.

TonyTax and other Tax Specialists are ready to help you
Customer: replied 6 months ago.
I with it now mate thank you for you’re help ��

Thanks.