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Can HMRC force to sell a shared property

3 months ago - Posted by

I have a tax bill of £23000 which I cant afford to pay.
I am going through a divorce and my wife currently lives in the property and we both wish her to remain there. The property is owned by us with a 50% share each.
Can HMRC force the sale of the house to recover the debt and thereby rendering my wife homeless ?

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1 Answer

TAD Member

3 months ago

Hi

Ultimately the owners of a jointly owned property can have it sold to pay a debt owed to any creditor for the debts of one of the owners.

So providing the correct procedures are used by HMRC, they could force you both to sell your home.

However, how this is done will depend on the procedure that is used.

Two procedures are available. The first is to place a charge on the property and ultimately apply for a warrant of sale (this procedure is not available in Scotland); the other procedure is to make the debtor bankrupt.

If HMRC make you bankrupt then essentially all your property belongs to the trustee in bankruptcy who may apply to sell the home to pay the debts owed and also their fees.

Your wife does have rights and she is entitled to her share of any equity from the home: but ultimately, unless the home has very little or no equity, it is likely the home will eventually be sold. Even if it doesn’t have much equity, they may wait till it does.

I would suggest you contact one of our advisers on the number below and we can advise you what is the best options available for you to deal with your HMRC debt and how to protect the home.

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