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Hi Alan, A client of mine gave assistance to a sibling some years ago to buy a home for herself. The assistance was in the form of a loan/gift of a capital sum. He was in good employment and a mortgage was obtained for the balance of the cost of the house. The bank insisted that my client be included on the deed and mortgage for 25% or a one quarter share. As this was the only way of his sister getting her home he consented. The sister pays back the mortgage and has lived in the house ever since. My client only ever wanted to help his sister get a loan and has no personal interest otherwise.. The bank wanted him in because of his income earning capacity. The sister is now considering selling the house and may have a significant gain. The proceeds will simply be used to buy another house and my client may (or more possibly may not) get his original loan/gift to his sister back. My client's sister will of course avail of principal private residence relief but will my client have exposure to CGT on the disposal, even though he neither considers or ever considered he had an interest in the house and was locked in by the banks to support his sister. Many thanks, Richard

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Asked on 20 January 2018 1:39 pm
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