Nnyk

Hi was she also on the deeds or just the mortgage? I have an almost identical situation but my mother is on the deeds too as they didn't do interest only guarantor mortgages. I'm hoping I can use this response for my transaction too. I know it's ok if just on mortgage but another hmrc admin confirmed there might be CGT payable in my case which is confusing as our scenarios are the same .

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.

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