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Alan,
I have 2 clients who own a property which has negative equity of €150k.
Property €320k – loan €470k.
Partner A has funds to clear loan provided he gets €50k from B , and B gives up interest in property.
What are cgt implications for B ? Property cost €400k in 2000.
Appreciate your opinion.
john

RESOLVED
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Posted by (Questions: 145, Answers: 1)
Asked on 24 April 2014 9:46 pm
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B is disposing of a 50% share in a property worth €320k, cost €400k, and is receiving €50k. B’s loss (€80k) outweighs his gain (€50k) leaving B with a net loss of €30k which can be carried forward against future disposals.
B has effectively got a loan write-off of his share of the debt – €200k – the question is, has he got a “gift” from A, or is the write off coming from the bank – in which case it might come under the terms of ebrief 12/2013

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Answered on 3 May 2014 4:24 pm