Unfair assessment of CGT following divorce

[bflatbesty]

When we were married we had 1 main house and 2 rental properties that we never lived in. We separated Jan 14. As part of the court order in 2015, the ex remained in the FMH and the 2 properties were ordered to be sold and the proceeds given to ex whereby I would receive 5% of the net sale proceeds which came to £17,500 in March 16.

HMRC tell me that as the properties were in joint names I am liable for 50% gain and therefore owe them £17K (ish). I have asked around and this is the general consensus which seems ludicrous when the actual share was part of a court order.

I have read through he HMRC guidelines and there is an example in CG65377 which stipulates :-

"Mrs D is not chargeable to Capital Gains Tax on the £53,000 she has received. It represents financial provision for her ordered by the Court and is not a sum received in consideration for the disposal of an asset."

If this is correct it would surely apply in my case and if so why don't they know about court orders?

Please can someone tell me if this is correct and if there is any more information on either court orders or financial provision.

[maths]

"Mrs D is not chargeable to Capital Gains Tax on the £53,000 she has received. It represents financial provision for her ordered by the Court and is not a sum received in consideration for the disposal of an asset."

If this is correct it would surely apply in my case

In the Example you quote the wife did not have any interest in the property sold; it was owned only by the husband.

In your case it seems the two properties are owned jointly. In this case on a sale each of you are liable to CGT on the gain on your respective shares.The Court Order, prima facie, merely provides for how the net sale proceeds are to be split.

[bflatbesty]

Ok I've reread the whole example and yes it belongs to the husband. In my case it seems wholey unfair to be treated as though I have half the proceeds for CGT when that's not the situation due to a court order.