Helping mother buy house - would I be liable for capital gains tax

[Yika]

My mother is buying a house. She can't afford it on her own so I'm contributing roughly a third. It will be for her sole use, and we will hold it as tenants in common in a two-thirds/one-third split. Will I be liable for capital gains tax on my share when we sell?

I actually don't own any other property (I live abroad, and rent) but this will obviously not be my main residence.

yes, i think you will but there is a tax-free allowance and property prices are not increasing very fast so you may not make enough to pay much tax.

how long are you planning to own it?

about £10k is exempt right now so you wouldn't pay on your third unless the property made a profit of £30k after you subtract your share of the costs of buying and selling.

Thanks - I would say 5 years at the very minimum - 10 or even longer being even more likely.

I actually have another question to chuck in :)- who would be responsible for major improvements/repairs? Our draft deed specifies that this would be her responsibility but that the associated expenditure would be repaid to her on sale before we split the balance - does this seem reasonable to you?

If its is your only house you may not be liable for tax, you would if you owned another property.

The second bit sounds great

Oh. Well I'm sure I'll buy my own place between now and selling hers... so I guess I will be liable. Too bad.

Thanks for confirmation on the second issue :)

Just bought a house with my dad 190/35 - he has the biggest share so I'll nick your idea!

Oh glad to find someone in a similar position - it is also for his use?

yes, so he could afford to live near us rather than hours away where prices were cheaper