I realise this topic has been visited a few times before but I can't find an answer to this exact case. Salient facts:
- Family home acquired as Joint Tenants in 2005 for 600K, now valued at 1.5m
- Separated (I moved out of the above home to rented property) February 2017, Decree Absolute May 2018
- Former Spouse remains in home and will continue to do so; I am currently in rented property still
In the divorce settlement there is a condition that the home be placed in Trust for 100% beneficial ownership of my former spouse upon issuance of the Decree Absolute. At such time as the mortgage is paid off (likely 2020) the house will then be transferred into her sole ownership. (This is principally for estate planning purposes.)
Questions:
1. Would moving the property from JT to TIC be viewed by HMRC as a "disposal" for CGT purposes, especially given the proportions of beneficial ownership have gone from (implied) 50:50 under JT to 100:0 under TIC ? If that is the case, would that mean I would incur a CGT liability in the tax year 17/18 (the period in which we separated) vs 18/19 (the period in which the Decree Absolute was issued) ?
2. In registering the Form A restriction and severing the JT with the Land Registry, I assume both parties would still be named on the Title Deeds ? There will be a deed of trust submitted with the Form A showing the proportional ownership under the TIC. That being the case, I assume that a further conveyance would be required as such time as the Title is transferred to sole legal ownership of my former spouse.
3. If I stay in rented property, I assume I can still claim the family home as my PPR and claim relief according, deferring any potential CGT payable from February 2017 until such time as I buy a house and explicitly declare that as my PPR ?
Thanks in advance for your help,
Brian
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