How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 13938
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
16196420
Type Your UK Tax Question Here...
Sam is online now
A new question is answered every 9 seconds

My name is ***** ***** my question is about cgt. We own 2

Customer Question

Customer: My name is ***** ***** my question is about cgt. We own 2 houses one in my name one in my husbands (family home) with a family rights notice on it. We have sold the family home and i want to transfer the home, which is in my name to my husband as part of the divorce settlement. i have lived in the family home, which has been sold and my husband has lived in the house which is in my name for the past 3 years previously it stood empty. I have been informed i will have to pay cgt on the 2nd home when i transfer it to my husband. Is there anyway round this?
JA: Thanks. Can you give me any more details about your issue?
Customer: My name is ***** ***** my question is about cgt. We own 2 houses one in my name one in my husbands (family home) with a family rights notice on it. We have sold the family home and i want to transfer the home, which is in my name to my husband as part of the divorce settlement. i have lived in the family home, which has been sold and my husband has lived in the house which is in my name for the past 3 years previously it stood empty. I have been informed i will have to pay cgt on the 2nd home when i transfer it to my husband. Is there anyway round this?
JA: OK got it. Last thing — JustAnswer charges a fee (generally around $18) to post your type of question to UK Tax Experts (you only pay if satisfied). There are a couple customers ahead of you. Are you willing to wait a bit?
Customer: yes that's fine
JA: OK. Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 1 year ago.
Category: UK Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question - I am Sam and I am one of the UK tax experts here on just Answer.

I am afraid there is no way around the capital gain position as there was a time when this has not been your mian residence and it is this time that forms the capital gain position.

However may I ask when did you and your husband separate and what date you plan to make this transfer, and when it was decided (formally) that this property would transfer into your husbands name, and I can see if there is scope to reduce this for you

Also when this property was bought

What dates it had been your home

Whether it was ever let out to tenants and any rental income declared to HMRC (with dates)

Thanks

Sam

Customer: replied 1 year ago.
We separated 3 years ago, the proceeds from the family home are going to a client account held at my solicitors till we come to a financial agreement, when that happens the transfer will take place.The property has been in my name only since we bought it in june 2009 , it has never been rented out
Expert:  Sam replied 1 year ago.

Hi

Then I am afraid capital gains will arise as unless this had taken place in the year of separation (tax year) then you would have been exempt on this, due to the fact you are still treated as husband and wife in the tax year you separate and this allows an exemption with transfer of assets between spouses.

So you would want to ensure that you build in the cost of any capital gains tax into the dividing up of assets and monies - so that the cost of this is shared equally to balance matters up.

As there is sadly no way around this arising -

Let me know if I can be of any further assistance

Thanks

Sam