Divorce and Transfer of Property

[Prance]

I am currently going through a divorce. My wife and I own 2 properties in the UK and one in France. Regarding the 2 UK properties they are both in joint ownership and we are transferring one into my name only and one into her name only. The french property is up for sale and we will have to sell it for less than we paid for it. Can you please advise whether there is any CGT on the transfer of the 2 UK properties and what is the position regarding the French property.
Thank You.

[maths]

Are you still living together?

Are any of the properties your sole/main residence?

What are the values of the two UK properties?

There are provisions which preclude any CGT charges (if any) arising on the exchange.

Re the French property it would appear that a capital loss may arise offsettable against any capital gains. Any UK CGT computation needs to be carried out on £ not euros whereas for French tax purposes the computation will be in euros. I assume the property os an investment property.

[Prance]

Hi
No we are not living together.

One property was bought in 2000 for about £65 and is now worth about £140k and is my main residence.

The other was bought in 2014 for £75k and is worth about £100k which my wife lets to tenants. Both properties have had refurbishments.

The french property was for a holiday home and hoped it might increase in value but prices have dropped, especially regarding BREXIT.

[Prance]

Anyone got an answer?

[SteLacca]

When did you separate?

[Prance]

September 2016.

[Prance]

Also, we have been going through a long and protracted divorce and the transfer of properties is (will be) part of the court order.

[SteLacca]

Unfortunately, because the transfer of the properties occurs in a tax year later than the one in which you separated, and given that there are transfers both ways, you will both probably be liable to capital gains tax on your respective disposals.

I assume that one of the UK properties is/was your principal private residence, in which case that property should qualify for private residence relief. The other will be chargeable based on the open market value and calculated as normal for capital gains tax purposes.

[Prance]

Thank you. Yes the property that I'm in is the family home which will be transferred into my sole ownership. My wife rents out the other property which will become solely owned by her.