CGT on Property Sale

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Asky2022

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What would be my CGT libability on below

Purchased house in 2007 for 380000 with ex girlfriend
Took over mortgage in 2014 from ex with ex paying 55,000 as property was in negative equity. House was worth then sub 300K
Selling house in 2023 for 375000

Solicitor says as i took over the remaning 50% mortgage in 2014, i could be liable for CGT
 
Why do you/your solicitor think that the past negative equity issue or the mortgage is in any way relevant to any potential CGT issue?

If you bought your ex's < €150k share out for a discounted price of €55k then there could be a potential outstanding gift tax issue there?

What are your solicitor's outline calculations here?

You probably need independent professional tax advice on this.
 
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Was the house your PPR at all times since you purchased it in 2007?

If so, I don’t see how there would be any CGT liability.
 
ClubMan said:
Why do you/your solicitor think that the past negative equity issue or the mortgage is in any way relevant to any potential CGT issue?

If you bought your ex's < €150k share out for a discounted price of €55k then there could be a potential outstanding gift tax issue there?

What are your solicitor's outline calculations here?

You probably need independent professional tax advice on this.
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Solicitor/Accountant hasn't come back yet so trying to gauge what i could be liable for
 
Asky2022 said:
PPR from 2006 - 2016 then rented out to present
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Then your solicitor is correct. Assuming ownership transferred to you in full in 2014 when you took over the mortgage, then you have a gain on the 50% you took over.
 
So, lets say the house was worth 280K when ownership transferred to me and now i sold for 375K, i would be liable on gain of 375-280=95*33% eventhough original price was 380K
 
Asky2022 said:
So, lets say the house was worth 280K when ownership transferred to me and now i sold for 375K, i would be liable on gain of 375-280=95*33% eventhough original price was 380K
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Not quite.

50% You've always owned. No CGT as selling for less than purchase.

50% you 'bought' for 140k in 2014. That 50% is now selling for 185k. But you lived in it for 2 years after, and the last year is treated the same as owning.
So (185-140) * (6/9) = 30k
Minus personal allowance of 1270, and then CGT at 33%

So just shy of 10k.

You can deduct legal fees, estate agent fees, etc. And the exact months come into calculation.
 
NoRegretsCoyote said:
Did you actually legally buy her out?

If so, what was the valuation for stamp duty purposes in 2014?
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We got separate solicitors to agree the 'buyout' at the time. As far as i can recall we did not get an official valuation at the time and worked out the payment between solicitors. As far as i can recall too, there was no new mortgage number either from the bank
 
Surely all discussion is moot as the house sold for less than the purchase cost, so no capital gain is made?
 
Asky2022 said:
We got separate solicitors to agree the 'buyout' at the time. As far as i can recall we did not get an official valuation at the time and worked out the payment between solicitors
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If the property was transferred into your sole name, and stamp duty paid on the 50%, there should be a record on the property price register.
 
RedOnion said:
If the property was transferred into your sole name, and stamp duty paid on the 50%, there should be a record on the property price register.
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Nothing on Property Price Register. It was a form i think we filled out for bank and they were happy to have me take over the mortgage
 
Asky2022 said:
Nothing on Property Price Register. It was a form i think we filled out for bank and they were happy to have me take over the mortgage
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If you just "took over the mortgage", then your ex still owns 50% of the property. Your solicitor would have done more than that at the time.
 
That makes sense. I'm almost certain stamp duty would have been payable on the transfer of 50% ownership. That would have had, or assumed, a particular valuation which was provided to Revenue as part of the stamp duty filing.
 
ClubMan said:
Isn't it completely irrelevant with respect to the issue of CGT?
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Ordinarily yes, but maybe not entirely in this case as the payment made by ex to be removed from mortgage might evidence a value for the property transfer if no other exists.
 
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