Capital acquisition tax after approval for removing ex from mortgage

F

Foggy123

Registered User
Messages
2
Hi
Similar situation to many here bought house in 2006 paid 375k mortgage still over 300k house worth much less now. Split with my husband 4 years ago court ruled in separation house was to be transferred to me subject to the mortgage banks approval. Well 4 years later ive git that approval but its for me and my new partner to take on the remaining mortgage with my exs name removed. We were delighted but now solicitor is suggesting that my partner may be liabile for capital acquisitions tax on half the house and stamp duty even though no consideration is being paid here and house is in major negative equity. Solicitor said revenue may deem him receiving half the house from my ex as a gift, any one know if this is correct? I will be seeking formal tax advice if going ahead but want to know if that is even worthwhile. My ex pays nothing towards mortgage never has but his name is on it since purchase till now and we separated in 2011. Ex is more than happy to get his name off of it I couldnt do it alone as mortgage is so big couldnt get approval hence my partners involvement
 
I think that your solicitor is wrong on this one.

Let's say you have a house worth €250k and a mortgage of €300k.

If effect, your husband is paying €150k for €125k worth of house. There is no gift here and I really don't think you need to pay for tax advice on what is a fairly routine transaction.

He and you will be deemed to be buying 50% of the house from your ex, so you will have to pay stamp duty which is 1% of €125 or €1,250.

You and your partner must do up an agreement for the purchase and the mortgage so that, if you split up, you will know where you stand.

Brendan
 

Thanks Brendan

I was really confused on that was struggling to see how half a 300k negative equity mortgage could be considered a gift.
 
You must log in or register to reply here.
Menu
Log in
Register