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Where Taxpayers and Advisers Meet

Asset split During Sereration/Divorce

Simon1011111
Posts:4
Joined:Sun Apr 10, 2022 11:53 am
Asset split During Sereration/Divorce

Postby Simon1011111 » Sun Apr 10, 2022 12:12 pm

Hi and thank you for reading this message..

Me and my wife are discussing a divorce/separation. We currently have 2 x properties. One is in both our names and the other is on a buy to let mortgage in my name.

We have amicably decided if its possible for one of us to live in one property and the other in the buy to let property.
We understand that we would need to change the buy to let mortgage to a residential mortgage and change deeds to her name.

My question is would there be any stamp duty or capital gains tax payable for my wife to take on the buy to let for herself as part of our separation/divorce?

Many thanks for your time

Simon

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

Re: Asset split During Sereration/Divorce

Postby pawncob » Sun Apr 10, 2022 7:20 pm

If you do it before separation, no CGT problems.
With a pinch of salt take what I say, but don't exceed your RDA

Simon1011111
Posts:4
Joined:Sun Apr 10, 2022 11:53 am

Re: Asset split During Sereration/Divorce

Postby Simon1011111 » Mon Apr 11, 2022 10:15 am

Thank you for this advise

Do you no of a good tax advising company that I can call for a bit more advice regarding this please?

Many thanks

SImon

Simon1011111
Posts:4
Joined:Sun Apr 10, 2022 11:53 am

Re: Asset split During Sereration/Divorce

Postby Simon1011111 » Fri Apr 15, 2022 12:42 am

If you do it before separation, no CGT problems.
Great advice we have not divorced/separated yet so still time to transfer ownership over.

We have another dilemma though it looks like normally we would not have to pay stamp duty if part of a sep/divorce but if we did file a sep/divorce to get around the stamp duty we would fall into CGT?

Is it a case of picking the cheapest option ?

Or maybe we could transfer property ownership before divorce/consent order pay the stamp duty initially and then claim it back at a later date once the divorce has been filed?
Thank you so much

Simon


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