View Single Post
  #11  
Old 05.04.2007, 15:48
MaryT's Avatar
MaryT MaryT is offline
Junior Member
 
Join Date: Dec 2006
Location: Geneva
Posts: 92
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 5 Posts
MaryT has no particular reputation at present
Re: Can anyone help with a UK tax question?

quote: The Govt *do* tax you on cash you take out of the house as equity, which does stink because yes, it is a loan - I bought at the right time, so my house pretty much doubled in 2 years - my intent was to remortagage and draw about 35,000 out of the equity, however I was told by a financial advisor this would hit me for about 40% tax (!) so I never bothered with it in the end.
I am not sure how to do the little quote thingy.

I think you need a new financial advisor... Getting out a new loan on your property, without selling the property, does not constitute a capital gain event, and thus is not liable for the 40% tax. Unless you sell the house, but even so, you are not liable for CG tax on your PPR, personal private residence, not matter how much of a profit you make (slightly different thing if it is an investment property), but you actually have to sell it not just remortgage it. Taking out a remortgage is the same as taking out a mortgage, why would the government tax you?
I know loads of friends that took out remortgages, and none have had to pay any tax!
Reply With Quote