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Posted Thu, 12 Sep 2024 15:52:57 GMT by Michael Anthony
In 2009, my mother co-signed for a mortgage, so my brother could purchase a house from my father. My father has since passed away. From 2009 onwards, my mother had no involvement financially or otherwise with the property. My brother made all mortgage payments, paid for all upkeep of the property, etc. Two weeks ago, my brother made the final mortgage payment. The property was originally listed as Joint Tenants, but in May it was switched to Tenants in Common. My mother wants her name removed from the Title, but she seems to be facing a CGT. Is there any way to get around this? My mother had no other involvement other than co-signing the mortgage. Is there a place, a form, or a way to show that my mother's share of the property is negligible for CGT purposes?
Posted Mon, 23 Sep 2024 07:59:15 GMT by HMRC Admin 21 Response
Hi Michael,
As she is on the deeds she is the legal owner and therefore liable to CGT. If a declaration of trust was in place making your brother the beneficial owner of 100% then this would affect any gain for your mother. Any decalaration submitted now cannot be backdated.
Thank you.

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