If my brother-in-law moves out, will he still retain ownership of his share of the property?
My 2 brother-in-laws live in the same house and are joint owners. One of them is getting married and is moving out. When he moves out, will he still retain ownership of his share of the property? He has suggested that his brother buy him out and is willing to accept about 50% of the value of his share of the property, which is approx £100k. Are there any tax implications to this move? The property is worth approx £200k.
When the brother moves out he will still retain ownership of his share of the property. If the present market value of the property is £200K, and he sells 50% of the property (ie his share) to his brother (ie a connected person) then the Revenue will treat this as a sale for £100K, whether he actually receives £100K from his brother or not. This figure of £100K is what he will have to use in his capital gains tax (cgt) computation. However if he has lived in the property all the period of ownership, then the disposal is exempt from cgt due to principal private residence relief.
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