Who to approach for best advice?

(8 Posts)
deltacrook Sun 11-Sep-16 12:35:57

Not sure if it is a solicitor or tax or can the cab help?

We are on the verge of splitting. I have a rental property inherited from when my brother died in 2003. Tried to sell it but it wouldn't go. Now over the years I am likely to owe the tax man more than any profit made - if it sold.

I need to know what to do in terms of finances so make sure that I can live with DS in a rental. We have the marital home too which has equity that could pay the capital gains on the sale of the rental but it's all confusing and I fear I could walk away with nothing. Selling could take months and months and I could then up having to share a 2 bed house with H because I can't afford to move out.

I had a look at entitled to to see if I can get help but I am confused about what I need to declare. Any income I get from the property fully stays where it is as I cannot afford to pay for any repairs if they come along being on my own. So I may have some profit each year but until the year is over I don't know how much. I earn under £15000 a year from work. A basic rental here is at least £550.

Who do I get he,p from?

Can't move to the rental as it is miles away from where we are now.

deltacrook Sun 11-Sep-16 12:52:32

And just to add I know it will be seen as a marital asset so he owns half. Being honest I'd happily give him the lot. I know he can afford it on his salary which is double mine. This isn't me wanting to keep it. I just need to be sure I can afford to move out and not have money worries doing so.

deltacrook Sun 11-Sep-16 16:54:06

To the knob who private messaged me offering to buy me out at a vastly reduced rate please piss off. I have reported your message to HQ. Disgusting to private message someone when they are at a difficult cross roads.

rememberthetime Sun 11-Sep-16 19:48:26

Oh dear - I feel for you. it is so confusing. i have many of the same issues, including a buy to let that i would rather not have.

One thing you should be aware of is that if you go for a mortgage in the future your BTL will be taken into account and you will be expected to have enough income to cover that mortgage as well as your own. That has caught me out. So you are best getting rid of it if you can.

the capital gains tax may be much less than you think as you only pay it on a percentage of the profit and then less any improvements or repairs you have made. it could be very little in the end.

You need to break this down into steps. Your first is to get advice. Approach CAB first. they will advise where to go next. You could call HMRC and ask about capital gains tax and your obligations.

treat the rental as something separate and decide if you would rather sell it before divorcing or wait until after. You may be accused of trying to hide income or assets if you sell it first though - so take advice.

You should simply let a solicitor work out the best approach. You don't need to understand all this - let someone else take that burden. Just make sure they are acting in your best interests.

be completely open and honest abut everything and don't try to hide a thing. the starting point is lways 50/50 so your H will need to declare his earnings and pensions too so you could end up with more than you think.

deltacrook Sun 11-Sep-16 20:34:16

Thank you for posting. Yes, I fully intend on declaring everything. I am not bothered about assets or cash. I just want to know that DS and I will be ok and manage monthly without having worries like a boiler breaking down or other tenant issues.

babybarrister Sun 11-Sep-16 21:38:26

find a specialist family lawyer - for example look at the Resolution database or PM me with a rough idea of where you are. Your solicitor will no doubt have to seek a report from an accountant in due course if the tax situation is complicated

MrsBertBibby Mon 12-Sep-16 07:26:51

Why are you worrying about not being able to afford to pay CGT on the sale? CGT is charged as a percentage of the profit, it can't be more than you get for the sale.
That would be the increase in value since you inherited, not since your brother acquired it.

As BBarrister says, a decent family solicitor should be able to clarify things for you.

deltacrook Mon 12-Sep-16 12:52:31

Because there is a mortgage to be paid off Bert. Plus it needs to sell so sit empty until that is done.

I have the feelers out for some professional advice.

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