Steve Gandy
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Guarantor on mortgage for daughter - Does CGT apply
In order for my daughter to be able to buy her first house in 2018, I acted as guarantor on her mortgage which allowed her to borrow more towards her mortgage to purchase the property. I contributed nothing towards her deposit which she saved for. Since purchasing the property, she has paid every mortgage payment with no financial assistance whatsoever from me. Last month she sold the house and moved into a new house. The profit from the sale of the old house was £52k. Amongst the conveyancing paperwork was a note to seek advice as to whether CGT would apply to the profit, as my name as well as my daughter's was apparently on the deeds of the sold house. This surprised me as I only ever wanted to act as guarantor so she could borrow the mortgage required to purchase the property. The full £52k profit has been used to purchase her new home. As I have never made any financial contribution to the original property and the new mortgage on her new house is solely in her name, can you advise whether I am liable for CGT just because my name was on the deeds of the sold property. For avoidance of doubt, I live and own my own house where I have resided for 26 years and it is the only property I've ever considered I owned.