How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 13657
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
16196420
Type Your UK Tax Question Here...
Sam is online now
A new question is answered every 9 seconds

My partner ex has offered to buy him out of their former

Customer Question

Hi my partner ex has offered to buy him out of their former home which she resides there with his 7 ye old daughter there is a mortgage on the house of 24,000 and the house is worth approx 130. He is willing to accept the 20,000 she has offered him just get get rid of the mortgage in his name but is worried he will have to pay capital gains tax can u help
Submitted: 1 year ago.
Category: UK Tax
Expert:  adamousacom replied 1 year ago.
Absolutely, but more information is required.
He should have no capital gains but I'd like to speak with you to make sure the explanation is correct.
I will offer you a call to discuss this because I think this is the easiest way to help you. I prefer a call. Often information from a call changes the original answer (based on the limited information supplied in the original question).. Additional information normally comes out in a call and I am better able to give an exact answer that applies to YOUR situation.
We will speak as long as necessary to resolve your issue. This is the minimum JA allows for additional services.($5min-$500max).
All you need do is accept the offer and I'll be able to share my number with you in a private screen.
Expert:  adamousacom replied 1 year ago.
I'm confused why he thinks he would have to pay capital gains taxes. There must be something I'm missing.
Who owns the house now? him and her? If so he won't pay any gains tax.
Expert:  adamousacom replied 1 year ago.
I will opt out as I just realized this is a UK tax question. Sorry.
Expert:  Sam replied 1 year ago.
Hi
Thanks for your question, which has now been posted on the UK tax forum.
As its clearly been more than 18 months since this ceased to be his home, then yes there will be capital gains to pay.
This will be formed bu his half share of the value of the property now less the value at the date of purchase.
This will form the initial capital gain.
From this initial gain deductions for half share of the purchase costs (such as legal fees) and the costs of any major improvements can be deducted.
Then any tax reliefs, to reflect the time this was his main residence is taken into account, and then after all of this, the first £11,100 is exempt, then any gain left is liable to capital gains tax.
Let me know if I can be of any further assistance.
Thanks
Sam

Related UK Tax Questions