A shared equity agreement will have tax implications. The money received from the agreement is typically considered a loan and not income, meaning it is not taxable. However, the issue gets complicated once you exit the agreement. Here are some very general guidelines to keep in mind, based on analyzing the structure of these agreements. These could change depending on your situation: 1. The investment company is usually responsible for taxes on its share of any home appreciation. This means that if you exit the agreement by selling your home, your capital gains tax could potentially be reduced. 2. If you repay the investment company without selling your home, you shouldn’t trigger a capital gains event, since there was no sale. Nonetheless, there is potential for other tax deductions or gains based on the repayment amount.  Given the complexity of tax implications, we recommend consulting with a tax advisor when considering a shared equity agreement