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Where Taxpayers and Advisers Meet

Property Tax liability after relationship split

Hove81
Posts:7
Joined:Thu May 17, 2018 3:36 pm
Property Tax liability after relationship split

Postby Hove81 » Mon May 21, 2018 1:41 pm

Hi, after a bit of advice. Myself and my partner separated May 2017 (we were not married) and between us owned 3 properties 2 in joint names, 1 in his sole name. He now lives in one in his sole name and I live in 1 in joint names with our children. We are splitting the 2 joint properties so we have 1 each.

Property 1 - brought £197,000 original mortgage £167,500 now worth £325,000 now with £226,000 mortgage I am to keep this property and it will be transferred into my sole name

Property 2 -brought £319,995 now worth £375,000 with a mortgage of £222,000 this is rented out and my ex partner will keep this with the deeds being transferred into his name

Property 3 -sole name of ex he is keeping and giving me a settlement for funds I paid into the property

The settlement figure I will receive is between £95,000-£100,000. £27,100 for the price difference in the 2 rental properties and the rest in financial settlement for the amount of money I put into the house in his sole name.

My question is when we transfer the properties and I receive the money what taxes are due and who needs to pay what?

Many thanks

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Property Tax liability after relationship split

Postby pawncob » Wed May 23, 2018 12:40 pm

prop 1. gain £64k taxable on partner
prop 2. gain £27.5k taxable on you
prop 3. No gain, just a repayment of loan.
With a pinch of salt take what I say, but don't exceed your RDA

Hove81
Posts:7
Joined:Thu May 17, 2018 3:36 pm

Re: Property Tax liability after relationship split

Postby Hove81 » Thu May 24, 2018 4:29 pm

Many thanks, really appreciate the help


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