Capital gains tax question on house I own

I bought a house in 2007 with my partner at the time. We split up in 2009 and he came off the mortgage and deeds. In order for me to keep the property I had to put my mum on the mortgage and deeds to meet the affordability calculator of the lender so that I didnt lose my house. No money was paid to or from my mum. I paid the deposit in 2007, solicitors fees, all mortgage payments and have continued to do s . My mum was just on there for affordability purposes only to meet the lenders criteria. She has her own home that she lives in since the 70s with no mortgage. I now want to refinance my mortgage, borrow some more , extend the term and take my mum off. She is happy to come off, sign the deed, expects no money , has had no benefit or made any payments. Does she have to pay capital gain tax even though she has never paid any money or gained anything. I cant seem to find the answer but would seem unfair if so as ive been paying the property all these years and so I'm hoping it's not the case. To confirm i will remain in the property and on the mortgage as i now meet affordability requirements with the lender. I don't own and have never owned any other property. My mum has never lived in my property and will gain no benefit. Thank you for your assistance.

Hi Nyk Myw,
She may be as she is been a a legal owner .
Please see here:
Capital Gains Tax: what you pay it on, rates and allowances
Thank you. 

Hi I thank you. I have followed the link and still unsure . I have also used the calculation tool but my scenario is not on there. It says how did my mum acquire property. Gift, purchase or inheritance?. It was neither. She joined me on my mortgage and deeds to replace my ex to meet affordability for lender. She didn't pay, is not paying and has never paid nor gaining/benefitting from this. Also I refer to HMRC Admin 25 response to Clarkson27 4 months ago. Almost identical scenario yet you confirmed no tax implications as although mother legal owner she is not a beneficial owner. You confirmed capital gains tax is only chargeable when the property is being disposed of which is not the case here. You confirmed remortgaging is not the same as disposing. You confirmed capital gains is chargeable against the beneficial owner when they dispose of the property. Which is me . I am not disposing of the property. I am remortgaging from interest only to repayment and extending term and removing mum as lender says I can now afford it on my own. Please can you clarify as I understand my situation to be similar to clarkson27 except the mother bought the property as joint owner with them. I bought my property and my mother came on my 2 years later when my ex was removed. So I'm struggling to understand why I didn't get the same response. Please can you clarify? Also if CGT due will you accept a couple of estate agents valuations where they look at comparables as the online instant ones vary so much. Thank you

Hi
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Not HMRC...my take...when your mum was put on the property deeds for tax law purposes you gave her a share, you may not see it that way, but, if, as an example either of you had passed away after she was added to the mortgage then that property would be split between you for estate/IHT/tax purposes, so it is, in the eyes of the law, a gift. If she had just been added to the mortgage thats entirely different, in putting her on the deeds of the property she became a beneficial owner, entitled to a share of the capital in the porperty. No CGT was due on that gift as it was your PPR until that point, so PPR relief was due to you on whatever you had made between the purchase and your mum being added to the deeds. However, if she is now being removed as an owner she is, for tax law purposes, giving her share back to you, and is chargeable to CGT on the difference in the value between the two gifts, as it was never her PPR, so any gain on her share must be calculated and the tax paid to HMRC.

Thank you for your input Clive. I understand what you are saying but she went on for affordability as advised by MTG advisor so I didn't lose house (this would have had massive implications if not from ERCs, selling costs, staying in contact with an ex for longer than needed). The reason she had to go on deeds was because the mortgage had to be interest only for me to afford it due to us having to reduce term for her age , they don't do actual guarantor mortgages interest only so had to go on mortgage and on deeds, because we were told names on mortgage has to match deeds. She was not to benefit or pay and never has. Ive paid everything to date . It was temporary until I could afford mortgage on my own according to lender which I can now . Regardless of whether she was on deeds or not she would get the house if I died as she's my mum so that part would be irrelevant. Surely the solicitor would have mentioned this at the time also. They knew she was just on temporailry for affordability reasons. I feel like someone on the know should have pointed this out if it was to be an issue. If we thought CGT would be due then would have taken her off sooner when it wouldn't have been payable due to the amount. I looked at the document which states if beneficial owner. Other than being on deeds she doesn't meet requirements of a beneficial owner, she's never paid anything , never lived there, never got any rental income and won't ever benefit from any sale. Never paid any home improvements. So basically if CGT is payable it's like im paying it as it's my property which seems like a way round getting CGT off me when I'm not liable. As would not be fair if she has to. HMRC also replied to someone else with similar query saying not liable. The only difference was that person had joint bought with mum and was remortgaging into his and wife's name. So I don't understand why that would be different as up until now surely that would be the same , that she would be entitled to property if he died before remortgaging with his wife. It's very confusing especially when paying solicitors to do a transaction that they fail to mention possible implications. It seems if you are correct my mum has to find money to pay something just for being there to meet lender criteria. If she isn't gaining from property or never paid anything and house not being sold then where would she supposedly get the money from. It doesn't make sense. The only way to pay would to come from me but I'm not liable. Very confusing.

Understood...all I can say is what seems right from a personal perspective versus what the law says can be two very different things...tax law often doesnt consider all circumstances that are out of the ordinary...until tested in court (thats why appeals processes exist and ultimately it can be taken to court to test the legislation that applies, tax cases are heard in court daily/weekly/monthly)...and then the law can be interpreted differently/changed if ruled in favour of the taxpayer or confirmed if HMRC prevail...the above is my interpretation of the position if someone asked me it's what I'd say, the events need to be considered somehow as ownership physically changed on the deeds, and as no consideration then the law would treat this as gifts, with all the legislation that relates to that...Id be more than ok to be wrong.

Hi Nnyk,
As on the deeds she is a legal owner of the property. you would need to provide a declaration of trust to show that she has 0% interest as a beneficial owner so that no CGT would be due. this would need to be submitted prior to selling.
Thank you.

Not HMRC...wasnt aware a declaration of trust could be backdated? Could someone from HMRC comment? Thanks.

Hi,
It cannot be backdated.
Thank you.