Mortgage Interest Relief

[bamboozle]

I’ve a sticky question, currently co-own a house with a sibling, as this is our PPR we’re claiming MIR on it, however I am about to buy with my partner, I have an agreement with my sibling that she will buy my half of our PPR in 6 months time (financial constraints mean it cant be done any sooner)

so I’ve 2 questions;
firstly as this is my PPR I presume I’m not liable for CGT when I sell?
and secondly once I sell my half of the PPR can I claim MIR on the property I purchase with my partner? (even though this will be bought initially as an investment property) or is there a more tax efficient way of doing this?

Thanks

 

[davidoco]

I have an agreement with my sibling that she will buy my half of our PPR in 6 months time (financial constraints mean it cant be done any sooner)

There would be no problem not having sold your PPR (interest/share) for up to 12 months.

Regarding mortgage interest relief, complete the forms for interest relief on mortgage on new property with new partner and revenue will (I think) notify existing mortgage bank that you are no longer entitled to interest relief on your half of existing mortgage. At the end of the year (depending on the interest limits) you could look for some relief on the interest you paid and got no TRS from the bank.