CGT on shared property?

T

thomas1234

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i own a property jointly with my brother.

it is his primary residence, with his wife and child. they've lived there for years.

we want to sell, and them to buy a larger house with the proceeds.

is there any way for my half of the house to be transferred to him without incurring massive cgt? i don't want anything from the house, he's paid the mortgage from the start, it's his place in everything but on paper. (family reasons why my name was on the mortgage....)

alternatively, if we sold it and i went on the mortgage of the new place, could i roll over the money into the new place?

cheers.
 
"is there any way for my half of the house to be transferred to him without incurring massive cgt?"

The only thing I can think of is that you establish it as your principal private residence by living there for the requisite time. Then sell.

mf
 
Above advice is no good. If you live there for a year but own house for say three years at time of selling, then only 1/3 of the CGT is relieved.

Any chance he could own the beneficial interest - you state that you have 1/2 the legal owndership ?
 
thomas, talk to your solicitor. It appears from what you have said that you have no beneficial interest in the property and, if this is the case, the entire sales proceeds will be rightfully your brother's and you will have no tax obligations in relation to the sale.
 
Nige said:
thomas, talk to your solicitor. It appears from what you have said that you have no beneficial interest in the property and, if this is the case, the entire sales proceeds will be rightfully your brother's and you will have no tax obligations in relation to the sale.
Click to expand...

Yes, this is a situation where a declaration of trust and transfer will cover off the transfer of the nominal half share of title without tax issues and in turn he can sell with no CGT.
 
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