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Where Taxpayers and Advisers Meet

Capital Gains Tax implications

purpleozzie
Posts:2
Joined:Tue Nov 28, 2017 12:16 pm
Capital Gains Tax implications

Postby purpleozzie » Fri Aug 30, 2019 8:12 am

Hi..

I split up with my ex-wife 4 years ago. I moved out of the marital home immediately. The marital home has a mortgage that is solely under my name..

Weve just had our final hearing on the financial settlement.. the judge ordered that the property get sold immediately and my ex-wife gets the lot :(

It's our only property and has been her primary residence since the split..

My ex-wife did have a business registered at this address for a few years..

The gain on the property will be about £115,000

I just wondered what the Capital Gains tax implications are on this..

Many thanks..

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Capital Gains Tax implications

Postby pawncob » Fri Aug 30, 2019 11:17 am

Ownership? Sole? Joint tenants? Tenants in common?
With a pinch of salt take what I say, but don't exceed your RDA

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Capital Gains Tax implications

Postby AGoodman » Fri Aug 30, 2019 11:45 am

If the mortgage is solely in your name then I presume the title is in your sole name. Absent any other arrangements (such as a trust deed), you will be sole owner.

It doesn't look like the circumstances of the sale, or your wife's circumstances since the split, will be relevant. This may be different if the Order says anything about the property other than you must sell it and give your (ex) wife the net proceeds.

You will make a gain and can claim PPR for the period that it was your home plus the last 18 months (reducing to 9 months in April 2020).

We can't say more without when you moved in/out.


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