CGT payable with joint tenants/tenants in common??

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From: Funky Whuff


Dear all,
Just a question regarding transfer of property... if I was to buy a property with another person either as joint tenants or tenants in common (regardless of proportion of shares), if the first person wanted to give their proportion or transfer the entire property into my name, do they have to pay CGT on this? Is it classed as a sale?? I know stamp duty is payable, but what about CGT??
Thanks,
Liz

 

[DaleGG]

Reply: 1
From: Dale Gatherum-Goss


Hi Liz

Yes, CGT is applicable because your friend is deemed to have disposed of their share of the property. What's more, the disposal price is at market value and not the price to which you both agree.

I hope that this helps

Dale