Mesher Agreement / Capital Gains Tax

[Scabutz]

Currently getting divorced. It's amicable and we have agreed on finances. I had a free hours consultation with a solicitor.

We want her and the kids to remain in the house until youngest finishes school. This also gives my wife time to potentially get herself into a better position to buy me out.

So we get a Mesher agreement and the house transfers to her and I effectively have a mortgage over my share.

The solicitor I spoke to mentioned something about me possibly having to pay CGT on this when it's sold.

If I've lived there previously and don't own another house would I be exempt? We were talking about if I had a deposit and bought another house before the main was sold but can't recall if that's what she meant about the tax or if it was regardless.

Any ideas? Appreciate it's probably a question for a solicitor but trying to keep costs low as possible and I've burnt my free advice. Guess I could find another one and ask them.

[Countdown]

The link below suggests that the Spouse who moves out can still claim PRR

https://www.gov.uk/government/publications/capital...

https://wingatefp.com/a-welcome-relief-new-cgt-mea...

Private Residence Relief (PRR) Option:
One of the more significant changes introduced by the legislation concerns the treatment of the former matrimonial home. A spouse or civil partner who retains an interest in the property will be given the option to claim private residence relief (PRR) when the home is eventually sold. PRR exempts homeowners from paying CGT on the sale of their main residence, provided certain conditions are met.

Previously, an individual had to be living in the property at the time of sale to qualify for PRR. However, under the new legislation, spouses and civil partners who have moved out of the matrimonial home but still retain an interest in it can now claim PRR, potentially saving thousands in CGT. This change recognises the unique circumstances faced by divorcing couples and aims to alleviate some of the financial stress associated with the sale of the family home.

[Scabutz]

Thanks thats good to hear.

[NRG1976]

Providing the property is sold when the order is terminated PPR will result in no CGT.

[anonymous-user]

NRG1976 said:

Providing the property is sold when the order is terminated PPR will result in no CGT.

How do you actually force someone to sell once it gets to the end? What happens if they become disabled in the mean time and would effectively be homeless if the house was sold.

What happens if the husband in the mean time has bought another house, I assume he will have to pay secondary stamp duty on this? What will happen when if comes to sell and the wife claims hardship and will be made homeless, whilst the husband has got himself another house?

Also I assume you are a powerfully built director? When I was getting divorced and was still on the mortgage of the marital home Santander laughed at me when I went there to enquire about another mortgage.

I thank god every day that my ex wife remarried and her new husband was able to buy me out of my share of the house and take over the mortgage. If he didn't do that I know at the age of 51 I would be still renting and my ex wife would have zero intention of ever selling.