- House purchase price £125k.
- Estimated market value £180k.
- Parents combined yearly salary £65k.
- Childs income £35k.
My parents purchased a house in 2013, with the idea of my partner and I living there. The house was purchased and remains solely in my parents name.
We have been paying 3/4 the mortgage, and as such are due to receive 3/4 of the profit, minus the initial deposit my parents put up.
After the sale, we will:
- Pay off the existing mortgage (£98k)
- Reimburse my parents for the deposit (£22k)
This should leave us with £60k to be divided between my parents and I.
- Will capital gains apply to my parents on the full £60k or their £15k?
- Will I have to pay any tax if they gift it to me?
If any other details are required, please ask.