This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

CGT on property sales for married couple living apart

tw3
Posts:1
Joined:Wed Mar 09, 2022 2:55 pm
CGT on property sales for married couple living apart

Postby tw3 » Wed Mar 09, 2022 3:26 pm

Last year my wife and I decided we would prefer to live in separate houses after many years of living together. We sold the family home and shared the proceeds equally. She bought a house in her sole name with her money. I bought a house in my sole name with my money. We pay all the bills for our respective houses independently.

We don't regard ourselves as "separated" in the common usage of the term because we have no intention of divorcing. Neither of us has stayed the night in the other's house, though we visit each other often because we bought houses that are only 15 minutes walk apart. Neither house is let or used as a holiday home as they are occupied full time.

My question is what is the CGT situation when one of us decides to sell his/her home and buy another?

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT on property sales for married couple living apart

Postby bd6759 » Thu Mar 10, 2022 9:16 am

A married couple living together can only have one house that is exempt from CGT. Married couples are treated as living together unless:
- they are separated under an order of a Court,
or
- they are separated by a formal Deed of Separation executed under seal (except in Scotland where the deed should be witnessed),
or
- they are in fact separated in such circumstances that the separation is likely to be permanent.


The third bullet may fit your circumstances.


Return to “Property Taxation”