CGT on sale of home in divorce
Discussion
Going through divorce process, relatively amicable.....and then right at the end of the process ( after financial mediation ) the solicitor doing the court stuff has asked "us" if we had taken into my account my potential CGT liability on sale of the family home.
I was blissfully unaware of this, and no I hadn't.
I left family home 2 years ago so in practical terms the house has not gained value. Family home will be sold in 2027. All equity going to spouse. How would the CGT element be calculated? What is the basis of the calculation in that the house was not formally valued at point I moved out. How would HMRC arrive at a figure? Would my liability be based on 50% of any potential gain from the point I moved out or the formal divorce being agreed in the court?
It appears after some wandering around Google that there were changes to the law last year which changed the CGT element in what would be my favour.
I am wondering if there is any other poor sod who has been through this and might be able to shine a light on best way forward that doesn't involve £500 an hour to a brief.
I was blissfully unaware of this, and no I hadn't.
I left family home 2 years ago so in practical terms the house has not gained value. Family home will be sold in 2027. All equity going to spouse. How would the CGT element be calculated? What is the basis of the calculation in that the house was not formally valued at point I moved out. How would HMRC arrive at a figure? Would my liability be based on 50% of any potential gain from the point I moved out or the formal divorce being agreed in the court?
It appears after some wandering around Google that there were changes to the law last year which changed the CGT element in what would be my favour.
I am wondering if there is any other poor sod who has been through this and might be able to shine a light on best way forward that doesn't involve £500 an hour to a brief.
YouWhat said:
Yes I have read that but directly above it it says "You usually do not have to pay tax if you transfer or sell your main home" .So there is an element of "Principle Primary Residence" that comes into play. Then there is a 3 year rule.....so like I say if someone has been through this and knows the machinations that that would be great.As far as my emails say if your ex is living in it then it’s not due as it’s the main residence.
If you are giving her all the equity is it not easier to just remove yourself from the deeds when it’s sold (assume you have a mortgage on it jointly until 2027).
You then walk away and the sale proceeds are hers?
I would check with a solicitor though.
If you are giving her all the equity is it not easier to just remove yourself from the deeds when it’s sold (assume you have a mortgage on it jointly until 2027).
You then walk away and the sale proceeds are hers?
I would check with a solicitor though.
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