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Where Taxpayers and Advisers Meet

Unusual CGT Problem for separated couple disposing of property

Jen
Posts:2
Joined:Wed Aug 06, 2008 3:04 pm

Postby Jen » Tue Jul 15, 2003 12:22 am

In 1995 my husband and I separated. Shortly thereafter I left the matrimonial home and after a period in rented accomodation acquired another property. However, I never lived in the property, as my husband moved in there, and by agreement I returned to the matrimonial home. As the matrimonial home was owned soley by my husband, we had the unusual (if not unique)situation, where we were each living in houses owned by the other. My husband now wishes to move home which involves selling the property owned by me. Although he has lived there for some 7 years, it appears there may be no entitlement to PPR and that I will be subject to CGT on any gain. The increase in value of the property could be as much as £200k. Is there any way of avoiding this CGT liability? I would be willing to transfer the asset to my husband or into some other vehicle (such as a trust)if it gave rise to the PPR entitlement.

Ian McTernan CTA
Posts:1232
Joined:Wed Aug 06, 2008 3:02 pm
Location:Bedford
Contact:

Postby Ian McTernan CTA » Tue Jul 15, 2003 3:41 am

Please advise whether you are now divorced and if so, when, as this may have an impact. Presumably you have agreed between you and with the help of a solicitor some form of separation agreement and if so, details of the terms relating to the properties would also be useful.

If you do not wish to post on this public forum, I can be contacted as below.

Ian McTernan CTA
Mcternan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com

Jen
Posts:2
Joined:Wed Aug 06, 2008 3:04 pm

Postby Jen » Tue Jul 15, 2003 7:28 am

I can cofirm that we are not divorced but have new partners. There is no formal separation agreement at this stage although it was always understood that my husband would ultimately have the benefit of the properties as I have business interests and assets which he has no part of. Hope this explanation is helpful.


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