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Posted Fri, 02 Feb 2024 07:33:39 GMT by
I have a separation agreement signed and in place with an ex partner (never married). I co-own a house with her and am still on mortgage and deeds and have never lived in it. The agreement says we are tenants in common with 100% to ex and 0% to me. Ex now wants to take me off the mortgage (a good thing) but i believe that i have a capital gains liability because i will be disposing of an asset at this point. She believes there is no liability because of the tenants in common agreement - but if true this means only that the disposal happened when the agreement was signed (which was not flagged by my solicitor at the time). I need to understand which is the correct position because I could declare a capital loss if disposal when agreement signed or it is a significant capital gains tax liability I'd the disposal is now when I'm removed from the mortgage/deeds.
Posted Tue, 06 Feb 2024 10:27:54 GMT by HMRC Admin 8 Response
Hi,
Any gain arising on a property owned as tenants in common will be allocated and taxed according to each owners share.
If this was the situation when the property was purchsed then you will have no gain/loss to report.
Thankyou.

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