Question on divorce and equity
Discussion
As regards Capital Gains Tax, any 'profit' arising on the sale of one's own 'main residence' is normally exempt from CGT.
If you have equity in your ex-wife's residence, I would assume that any profit realised would be subject to CGT (if over the threshold) as it is not your 'main residence'.
Unless you're an MP, I suppose;)
If you have equity in your ex-wife's residence, I would assume that any profit realised would be subject to CGT (if over the threshold) as it is not your 'main residence'.
Unless you're an MP, I suppose;)
280E said:
As regards Capital Gains Tax, any 'profit' arising on the sale of one's own 'main residence' is normally exempt from CGT.
If you have equity in your ex-wife's residence, I would assume that any profit realised would be subject to CGT (if over the threshold) as it is not your 'main residence'.
Unless you're an MP, I suppose;)
You can offset CGT against your yearly allowance from when you bought the asset. Which I think is around £10,600 per year...If you have equity in your ex-wife's residence, I would assume that any profit realised would be subject to CGT (if over the threshold) as it is not your 'main residence'.
Unless you're an MP, I suppose;)
IE if you bought the house 5 yrs ago, you can offset CGT on the profit by £53k if you sold it now. Providing you've not already used your allowance on something else (stocks n shares for example).
Jim1556 said:
You can offset CGT against your yearly allowance from when you bought the asset. Which I think is around £10,600 per year...
IE if you bought the house 5 yrs ago, you can offset CGT on the profit by £53k if you sold it now. Providing you've not already used your allowance on something else (stocks n shares for example).
A quick Google would suggest that CGT allowance is not cumulative, and that only the allowance in the Tax Year of asset disposal can be used. I do, however, hope that you're rightIE if you bought the house 5 yrs ago, you can offset CGT on the profit by £53k if you sold it now. Providing you've not already used your allowance on something else (stocks n shares for example).
280E said:
Jim1556 said:
You can offset CGT against your yearly allowance from when you bought the asset. Which I think is around £10,600 per year...
IE if you bought the house 5 yrs ago, you can offset CGT on the profit by £53k if you sold it now. Providing you've not already used your allowance on something else (stocks n shares for example).
A quick Google would suggest that CGT allowance is not cumulative, and that only the allowance in the Tax Year of asset disposal can be used. I do, however, hope that you're rightIE if you bought the house 5 yrs ago, you can offset CGT on the profit by £53k if you sold it now. Providing you've not already used your allowance on something else (stocks n shares for example).
I did something similar but in reverse - I bought the ex out, and since I couldn't raise all the money needed at the time agreed to pay her the balance within 10 years, or if I sold up before paying it back a proportion of any increase in value in the meantime. Solicitor drew up a deed of trust (possibly the correct term) detailing all of this and arranged for her to have a charge on the property, which was removed when I paid the balance.
It was her idea as she wanted a wedge of cash there and then to do stuff with the person she left me for, and after two months was bored of waiting for an offer she would accept on what had been our home.
It was her idea as she wanted a wedge of cash there and then to do stuff with the person she left me for, and after two months was bored of waiting for an offer she would accept on what had been our home.
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