Tax Questions

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Legally avoiding IHT and CGT through a Trust by Tweety Started by Tweety, 10-11-2020, 16:54 PM	8 responses 175 views 0 likes	Last Post by jpkeates 12-11-2020, 11:03 AM
Which DoT form TR1 or Form J0 by Berkshire45 Started by Berkshire45, 10-11-2020, 21:47 PM	1 response 40 views 0 likes	Last Post by jpkeates 11-11-2020, 09:23 AM
Improving EPC rating by sce9cmd Started by sce9cmd, 07-11-2020, 12:19 PM	1 response 52 views 0 likes	Last Post by jpucng62 10-11-2020, 14:33 PM
Looking for a new accountant by jtufty Started by jtufty, 01-11-2020, 16:10 PM	6 responses 137 views 0 likes	Last Post by Gordon999 09-11-2020, 06:23 AM
Tax advice please on allowable expenses in 2019-20 tax return by janenichols Started by janenichols, 07-11-2020, 21:43 PM	3 responses 144 views 0 likes	Last Post by theartfullodger 08-11-2020, 16:41 PM
Declaration of Trust and CGT by LISAR Started by LISAR, 07-11-2020, 15:48 PM	1 response 78 views 0 likes	Last Post by Gordon999 08-11-2020, 06:26 AM
CGT From BTL portfolio by ChloeRadshaw Started by ChloeRadshaw, 20-09-2020, 14:41 PM	7 responses 180 views 0 likes	Last Post by ChloeRadshaw 06-11-2020, 00:01 AM
Paying self assessment tax via ones tax code by Lots on Started by Lots on, 30-10-2020, 13:37 PM	20 responses 138 views 0 likes	Last Post by Lots on 02-11-2020, 17:26 PM
Can you claim back Mortgage arrangement fee redemption charges through CGT? by Berkshire45 Started by Berkshire45, 02-11-2020, 08:03 AM	1 response 89 views 1 like	Last Post by jpkeates 02-11-2020, 16:52 PM
Tenants in Common - Land Registry Question by trademark2k6 Started by trademark2k6, 02-11-2020, 15:33 PM	0 responses 109 views 0 likes	Last Post by trademark2k6 02-11-2020, 15:33 PM

Second home tax - should I divorce and re-marry?

by ReluctantLL2022

Hi,
Around 10 years ago, I bought my first property to live in. My dad helped me out and paid a 50% deposit to get me on the ladder. I'm listed as the owner on the summary of title land registry documents under the leaseholder/freeholder section.

After living in the property for...
- Channel: Tax Questions
28-06-2022, 21:20 PM
Reply to Second home tax - should I divorce and re-marry?

by Gordon999

R-2022,

In #2 , I proposed the "company" buys the property from you and the company becomes the owner of the property. The Company has no funds and borrows the £240K ; 50% mortgage loan from Bank and 50% loan from you ( director's personal loan ). The bank loan is...
- Channel: Tax Questions
29-06-2022, 15:07 PM
Reply to Second home tax - should I divorce and re-marry?

by DoricPixie

There’d be no point in attempting it as a married couple but unmarried couples would also be in for a nasty surprise since HMRC consider getting to occupy the property in such circumstances as a benefit....
- Channel: Tax Questions
29-06-2022, 15:00 PM
Reply to Second home tax - should I divorce and re-marry?

by DoricPixie

https://www.samconveyancing.co.uk/ne...lications-6085...
- Channel: Tax Questions
29-06-2022, 14:58 PM
Reply to Second home tax - should I divorce and re-marry?

by jpkeates

It's very unusual for a lender to be prepared to lend on a joint basis against a property owned by only one of joint borrowers.
And the additional SDLT would be payable if the two people were married anyway.

I can't imagine there are many instances of this ever happening.
- Channel: Tax Questions
29-06-2022, 13:38 PM
Reply to Second home tax - should I divorce and re-marry?

by ReluctantLL2022

Gordon999,
Good point on #1, I haven't calculated the capital gain, but I suspect it'll be more than £20K.

#2 sounds complicated - is this relatively straightforward to do with most lawyers?

"It's why those couples who try to circumvent the higher rate of SDLT rules...
- Channel: Tax Questions
29-06-2022, 13:20 PM
Reply to Second home tax - should I divorce and re-marry?

by Gordon999

R-2022

1. Have you calculated how much capital gains tax is payable after sale of the "first property" ? Since you lived at the property for a few years , the capital gain during " period of own residence" is not taxed.

So you pay tax on " the...
- Channel: Tax Questions
29-06-2022, 11:31 AM
Reply to Second home tax - should I divorce and re-marry?

by DoricPixie

Her solicitor, who will most likely also be acting for the mortgage lender, will want to know the source of the funds for the deposit. Not all lenders will accept a gifted deposit coming from someone who will live in the property but not named on the mortgage.

Yes because...
- Channel: Tax Questions
29-06-2022, 09:55 AM
Reply to Second home tax - should I divorce and re-marry?

by DoricPixie

It's why those couples who try to circumvent the higher rate of SDLT rules by having a joint borrower sole legal owner mortgages fail, because both joint borrowers have a beneficial interest as both of them took out the mortgage so they can both buy a property to live in regardless of how many people...
- Channel: Tax Questions
29-06-2022, 09:47 AM
Reply to Removed 2nd kitchen to sell property but can I still claim install costs against CGT

by Gordon999

You can claim the cost of "removing kitchen and converting to utility room" before finding a buyer as an improvement expense .

Just claim this part and deduct this expense in your calculation of the taxable capital gain....
- Channel: Tax Questions
29-06-2022, 09:05 AM

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