Thinking of selling half of property to partner

[Lanigano]

Hi,

I am thinking of selling halve my property(main and only property) to my partner who I live with. The money from this sale will clear my side of the mortgage and free up money for a business venture I am thinking of stting up. She however was thinking of building on family land further down the line, What are the tax implications with her FTB allowance and CGT for me?

many thanks

 

[Brendan Burgess]

Re: Thinking of selling halve property to partner

As it is your principal private residence, there are no CGT implications for you.

As a FTB, she will pay the lower rate of stamp duty on the purchase and will get the favourable FTB's mortgage interest rate.

However, I think you would be better to remortage your home yourself. If you borrow to invest in a business, you will be able to write off the entire interest against your taxable profits.

Brendan

 

[Lanigano]

Re: Thinking of selling halve property to partner

Thanks for that. I was thinking about that option but thought that because I would be quitting my current job to start new business the bank would be reluctant to let me remortgage with no concrete income. Is this the case or would they be happy enough that there is an asset against the mortgage?

 

[Ruam]

Re: Thinking of selling halve property to partner

Get mortgage clearance before you leave the job.

Ruam

 

[woods]

Re: Thinking of selling halve property to partner

Thanks for that. I was thinking about that option but thought that because I would be quitting my current job to start new business the bank would be reluctant to let me remortgage with no concrete income. Is this the case or would they be happy enough that there is an asset against the mortgage?

If your partners income is such that she can double her borrowings to buy you out then why not borrow for the business venture togeather and leave the house as it is.