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Where Taxpayers and Advisers Meet

CGT splitting a single property in to two houses for divorce

Mike12345
Posts:1
Joined:Fri Jan 10, 2020 3:00 pm
CGT splitting a single property in to two houses for divorce

Postby Mike12345 » Fri Jan 10, 2020 3:13 pm

Hello,

I have a 3-bed property which is currently being developed to add 2 more bedrooms, but which my wife and I would like to split in to two separate dwelling (a 3 bed house and a 2 bed house) as we want to divorce. I know there is complexities around the deeds, planning etc, but one of my worries is being stung with CGT.

Does the fact that we want to split the property as part of the divorce, so each of us has a single PPR, mean that we won't be charged CGT?

Regards

Mike12345

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

Re: CGT splitting a single property in to two houses for divorce

Postby pawncob » Tue Jan 14, 2020 12:23 pm

If you've occupied the house as your PPR then any gain to date is exempt. Once split (assuming you've divorced) each dwelling will become a PPR for each divorcee.
With a pinch of salt take what I say, but don't exceed your RDA


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