Buying property with a family member

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Buying property with a family member

    Hello all,

    I'm currently looking to purchase a BTL property in the UK with my brother. We both own a house each which is mortgaged, we both earn a similar yearly income but I also have a rental property.

    In regards to being most tax efficient etc is it better to have a the new property in both names or just one? This is not only for income tax but also any CGT. I believe being married carries benefits in regards to shared ownership but how about with a family member?

    If having it in joint names is the best method of purchase when completing the self assessment do we just work out income/expenses etc and just half everything and complete the self assessment. Is there a relevant section to declare a property is shared?

    Any advice is much appreciated

    Thanks

    #2
    If you both own it, there will be two sets of tax allowances (income and CGT) available.
    Assuming you both own half the property you would (as you describe) half everything.

    Without being morbid, what would you want to happen to your "halves" if you died - because that can get really complicated?
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Thanks for your reply.

      So in terms of tax benefits having it in one or both names doesn't matter?

      Hadn't thought about what would happen in terms of one of us passing away but it's a fair point

      Thanks

      Comment


        #4
        Both names means you have two tax allowances, that's a plus.
        For CGT, for example, when you sell you'd (currently) each have £11k growth tax free, so £22k as opposed to £11k if its in one name.

        You might want to look at a partnership (which is a pain, but can allow shares of income and ownership to change - just about - when you feel like it) or a trust (simpler but less flexible).
        Problems sometimes arise when a 50% ownership is inherited by a family or larger group of people, and they want to do different things with their "half" of the property.
        Using a partnership or trust can keep the half of the property out of the estate.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment

        Latest Activity

        Collapse

        Working...
        X