Capital Gains Liability.

Hi there, My fiancée bought a property 17 years ago, which she lives in (no second property). Her Brother helped her get the mortgage by using his income so they have a joint mortgage. He has never lived in the property and never paid any money towards it. He has never regarded himself as having any rights over it. He really wants his name off the mortgage, so my fiancée and I are having to re-mortgage so we can do this (we live in the home together). We are now at the transfer of equity stage which her Brother is happy to sign. However, he is worried he will have to pay Capital Gains tax and wants us to foot the bill. He bought his own home a few years ago which he lives in but is worried that he will be charged CGT. He and his Sister agree he has never had a financial interest in the property. We have approached accountants and Solicitors who seem very vague and unsure about whether he has a liability or not. HMRC seems the only place to find this out. I would really appreciate your help with this. Regards Simon

Hi S G,s he would be shown on the deeds as part owner of the property then the transfer of equity would be seen as a sale and yes Capital G Taxains would be due on the difference on what was paid for the property to what is being paid for the transfer.
Please refer to further guidance here: 
Capital Gains Tax: what you pay it on, rates and allowances
Thank you. 

Hi there, Just to clarify, my fiancée’s Brother paid nothing for the property. His name is on the mortgage but never gave any money. His income on paper helped her get the mortgage.He is transferring for NO financial reward or wants any money, because he never viewed this property as anything to do with him. Are you saying he still has to pay Capital Gains tax ?

Hi,
 

It is possible there is again. It depends on how the ownership was registered. please see guidance at : Joint property ownership    . Thank you .