Separation/divorce impact on CGT for property sale

Lived in, separated, divorced, rented.

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House purchased in Sept 91 for 85,000. Owned 50/50 husband and wife. Legal fees and stamp duty of 1500

In May 96 they separated. The husband moved out.

On June 05 they divorced and in March 06 the husbands 50% was gifted 20% as settlement in the divorce to the wife and 30% to his eldest son. The bank estimated the property value at 215,000.

On Feb 2010 the mother and son who have always lived in the property moved out and it was rented until now. The house is due to sell in May 2017 for 350,000

Ex wife CGT:

50% of 85k + 1.5k = 43,250

20% of 215k = 43,000

70% share = 86,250

70% of 350k sale = 245,000

Capital gains  = 158,750

Owned for 25.75 years

Lived in 18.5 years 

Rented 7.25 years

Less PRR = 158,750 × (18.5+1.5)/25.75 = 123,301

158,750 - 123,301 = 35,449

Less lower or PRR, Letting relief and 40,000.

35,499 - 40,000 leaves a capital gains of Nil.

Sons CGT:

30% of 215,000 = 64,500

30% of 350,000 = 105,000

Capital gains = 40,500

Owned for 11.25 years

Lived in for 4 years 

Rented for 7.25 years

Less PRR = 40,500 × (4+1.5) / 11.25 = 19,800

40,500 - 19,800 = 20,700

Less lower of PRR, letting relief and 40,000

20,700 - 19800 = 900

Less annual allowance brings taxable gains down to Nil

Does this look correct?

Have I used the correct value for the husbands share gifted in March 2006?

Also should the husband have been responsible for any CGT liability at that time? Or could this be transferred with the gifting of the property?

Replies (2)

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By johngroganjga
27th Feb 2017 11:56

You asked this very question several days ago when you claimed to be the wife. You received several responses.

Now you, very oddly, ask the same question in the third person.

If you wish to clarify the responses you have already been given why do you not do so on the same thread, rather than starting a new thread pretending to be someone else.

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Replying to johngroganjga:
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By JMQS Housing
27th Feb 2017 14:50

Previously I copied and pasted what my friend had emailed me. Now I'm rewriting it clearer because it was you who said the figures weren't clear to easily recalculate.

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