Ex rental now wifes main residence - to sell

[MattMan10]

Hello,

I have a 2nd house which was being used as a rental until 2 years ago when my wife and I separated.

She has been living there since and as we are now divorcing we want to sell that house.

Will I need to pay CGT on this as it has been her main residence for 2 years.

Thanks

[maths]

Yes, you are liable to CGT on any capital gains assuming, which appears to be the case, that your wife does not own any part of it.

[MattMan10]

We are joint owners on the mortgage.

[MattMan10]

And its essentially passing to her in the divorce settlement

[maths]

Your additional info'; doesn't change my posts.

Gifts between spouses who have not separated can be passed between the two CGT free, but this is not your situation. You are in any event selling the property.

She may be on the mortgage which means she will also be on the legal title to the property but for tax purposes it is beneficial interest which are important. You refer to the property as "I have a 2nd property" suggesting you own 100% of the beneficial interest.

If she has always had a beneficial interest then some relief would be viable to her not you on any sale.