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

Half of my home after marital split

Cjb888
Posts: 3
Joined: Thu Feb 07, 2019 10:10 am

Half of my home after marital split

Postby Cjb888 » Thu Feb 07, 2019 10:14 am

Hi,

I am in a spot. In 1984 my wife and I married and bought a flat in another county where she lived, and I moved there, I remember how much we paid for it, £29,995. In August 2013, she decided that she wanted to split up, she was going to move into a hotel if necessary. I had been made redundant and we were living off what I had earned and my small pension. My father had just died as well, it was a bad time all round and my Mum was on her own and in her 80's, so, the most sensible solution was for me to move back home with my Mum which is where I still am.

My wife has lived in the flat for the five and a half years since we split so I have received no rent income from it and it is not being sold to make a profit ( we are trying to sort this out amicably ) I was okay with this as I thought prices would rise plus I paid the mortgage off years ago, so no mortgage, ( my price theory is proving to be different I know but that is another story ) and now she wants to move. The flat has been put up for sale but now I am hearing that I will be liable for CGT because I haven't lived there. I have had to live with my Mum I have no other home, its not about trying to make a quick profit in the property market as I didn't want to leave in the first place, and in this area I will not be able to afford a shoe box.

We are still married, the flat was up for sale for £280,000 with no takers, and now we are discussing reducing it to £265,000 I am just trying to find out about this CGT issue as in my situation every saving is critical.

I would therefore very much appreciate, and be very grateful, for any advice or pointers that anyone may be able to offer.

Many thanks and kind regards
Chris

AGoodman
Posts: 885
Joined: Fri May 16, 2014 3:47 pm

Re: Half of my home after marital split

Postby AGoodman » Thu Feb 07, 2019 11:36 am

You could have a liability but it would be very small.

Gain of say £234k/2 = £117k
PPR would cover say 30 years of 35 (you can include the final 18 months).
That leaves a gain of 5/35 * 117 = £16.7k
Deduct annual allowance of £11,700 for current year leaves £5k
Tax at 18% if a basic rate taxpayer = £1k approx.

Cjb888
Posts: 3
Joined: Thu Feb 07, 2019 10:10 am

Re: Half of my home after marital split

Postby Cjb888 » Thu Feb 07, 2019 1:29 pm

Hi,
Dear AGoodman thank you so much for your time and prompt response I am very grateful. My pension is not enough to tax it is just under the threshold it is supplemented by savings that went through the PAYE system.

Cjb888
Posts: 3
Joined: Thu Feb 07, 2019 10:10 am

Re: Half of my home after marital split

Postby Cjb888 » Thu Feb 07, 2019 1:37 pm

Hi again ....... Sorry my head has been spinning on this I hit the send button before finishing off !
Thank you once again
Kind regards
Chris

someone
Posts: 384
Joined: Mon Feb 13, 2017 10:09 am

Re: Half of my home after marital split

Postby someone » Thu Feb 07, 2019 3:11 pm

If you are still married then I would have thought it would be your (plural) PPR therefore no CGT.

But I'm not sure about the separation rules. Fairness (ok, this is tax) would suggest that unless you're getting PPR on another property, it shouldn't be restricted on this one.

AGoodman
Posts: 885
Joined: Fri May 16, 2014 3:47 pm

Re: Half of my home after marital split

Postby AGoodman » Fri Feb 08, 2019 12:00 pm

The spousal rules for PPR unfortunately require spouses to be living together.

i suppose it is beneficial in some cases as it allows a separated couple to each claim PPR for their respective homes.


Return to “Capital Gains Tax, CGT”