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Where Taxpayers and Advisers Meet

CGT residential property

RoxyRose0007
Posts: 5
Joined: Tue Mar 03, 2020 11:43 am

CGT residential property

Postby RoxyRose0007 » Tue Mar 03, 2020 11:56 am

Hello I am new to this forum.

My ex and I separated after 23 years, have an 8 year old son together and he has agreed to transfer his share of the equity over to me. The lender has approved this and I have appointed a solicitor to carry out the transfer, however the solicitor has informed me that he isn’t regulated by the financial conduct authority and therefore I have to seek advice in relation to the tax implications of this transaction. I have contacted a few financial advisors upon which I am still waiting for their response! I have been advised that not all financial advisers are qualified in this area either and having looked on the government website about stamp duty and capital gains tax I still do not have a good understanding of the implications if there are any.

If anyone could advise me further it would be much appreciated. Thank you in advance.

maths
Posts: 7893
Joined: Wed Aug 06, 2008 3:25 pm

Re: CGT residential property

Postby maths » Tue Mar 03, 2020 3:23 pm

As far as I am aware you are not under any duty to seek tax advice; that is a matter for you not your solicitor.

I assume you and husband lived in the house. Is the arrangement being made between the two of you or under a court order? Are you divorcing?

When was the date of separation? Has your husband moved out and if so when?

It is unlikely that your husband will have a capital gains tax charge on a transfer by him to you of his interest.

No Stamp Duty Land Tax will be payable by you own the acquisition of husband's interest.

RoxyRose0007
Posts: 5
Joined: Tue Mar 03, 2020 11:43 am

Re: CGT residential property

Postby RoxyRose0007 » Tue Mar 03, 2020 9:44 pm

We weren't married we were engaged to be married.
The house was bought wirh a joint mortgage in 2007 and we separated in 2013.
We lived in the house together and it has been mine and my childs home since.
I have soley paid the mortgage payments each month since my ex left in 2013.
My ex has agreed to transfer his beneficial interest to me for £5k and the lender has approved this.

I want to know if I have to pay any tax and should I seek advise from a tax advisor or contact HMRC?

Are there any tax forms I need to fill out to send to HMRC?

Trying to find the right advisor is like trying to get blood out of a stone.

Thanks

pawncob
Posts: 4485
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: CGT residential property

Postby pawncob » Wed Mar 04, 2020 12:02 pm

There are no tax implications on the acquisition of your partner's share of the property. You will wholly own it. When you sell the property it will have been your PPR throughout your ownership, so no tax will be due.
You do not have to complete any forms or tell HMRC.
With a pinch of salt take what I say, but don't exceed your RDA

RoxyRose0007
Posts: 5
Joined: Tue Mar 03, 2020 11:43 am

Re: CGT residential property

Postby RoxyRose0007 » Wed Mar 04, 2020 3:15 pm

Thank you so much for your fast response.

I have contacted six tax advisors since Monday and not one has responded to me as yet. I have ADHD and difficulty processing information therefore I do not understand any of it even though I’ve been reading and reading online to try to make sense of it all and today I have a migraine from over working my brain. If I could understand it I would happily become a reliable sufficient tax advisor since they appear to be scarce.

I am very very grateful for your assistance in this matter for your have helped a damsel in distress and I wish you a pleasant day.

Thank you so much.

RoxyRose0007
Posts: 5
Joined: Tue Mar 03, 2020 11:43 am

Re: CGT residential property

Postby RoxyRose0007 » Wed Mar 04, 2020 3:41 pm

May I ask if my ex needs to pay CGT on the payment of £5k he is going to recieve from me for his share of the equity, he is self employed, married. (Thank God) 😂

Thank you

maths
Posts: 7893
Joined: Wed Aug 06, 2008 3:25 pm

Re: CGT residential property

Postby maths » Wed Mar 04, 2020 4:19 pm

Yes he will be liable to capital gains tax on the transfer of his (I assume) 50% of the property.

His liability will be based on the market value not the £5,000.

He will be entitled to some reduction as he lived in the property as his main residence for roughly 50% of the time that he owned his interest (Ie from 2007 to 2013 out of a. period of 2007 to 2020).

I would keep quiet as any tax liability is his, not your, problem.

As pawn cob states you do not need to make any returns etc to HMRC. All that is required is your solicitor transfers legal title from you/him to just you.

As I previously stated you are not required to take any tax advice if you do not want to. If your solicitor is difficult simply tell him you are happy to confirm in writing to him that you acknowledge that he has advised that he cannot give tax advice and you have chosen not to.

The odds are none of the advisors you have contacted will call you back.

As advised above you do not have any tax problems.

RoxyRose0007
Posts: 5
Joined: Tue Mar 03, 2020 11:43 am

Re: CGT residential property

Postby RoxyRose0007 » Fri Mar 06, 2020 12:45 pm

Thank you so much for your advice and I understand.

Wishing you a pleasant weekend RR


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