Income support and CGT

[pick350]

I loaned £18.000 from my mother to invest in a property with my husband. We seperated and my mother wanted her money back. The investment property is due to be sold in two weeks and my mother will receive her money back plus any profit gained. My name is stated joint on the deeds with my husband. I currently receive income support and will not be gaining any money from the sale. Will I have to pay the CGT because my name is on the deeds? Or can my mother pay it because the original investment came from her?

[Tax Accountant]

I loaned £18.000 from my mother to invest in a property with my husband. We seperated and my mother wanted her money back. The investment property is due to be sold in two weeks and my mother will receive her money back plus any profit gained. My name is stated joint on the deeds with my husband. I currently receive income support and will not be gaining any money from the sale. Will I have to pay the CGT because my name is on the deeds? Or can my mother pay it because the original investment came from her?

If your mother simply lent the money to you and your husband, she has no ownership rights on the property and should not share in the gains made.

It appears to me that the property belongs to you and your husband and both of you should declare the gains and pay tax thereon.

Have you declared this property to the Benefits Agency from whom you are claiming Income Support? If not, you should urgently address this issue.

Ramnik