Client is in throes of divorce. Spouse was builder and had remortgaged joint family home to speculate on a site and build a house. Meanwhile the marriage broke up. End result was that family home was sold and bank wanted the mortgage for the site and part built house settled. My client decided to take on the site and finish house to live in. My client has bought the site from the ex and taken over the mortgage. This was done after Decree Nisi but before Decree Absolut. My client has now changed her mind and wants to sell the site and part finished dwelling. I believe that the capital gain will be based on difference between the cost at which she has bought the asset and the proceeds of sale (allowing for cost of purchase and resale of course) However the usual "golf club" pundits are advising that there should be no capital gain. Am I missing something? or has anyone any suggestions (other than finishing the house and living in it to establish PPR) to mitigate the chargeable gain?
Any suggestions would be appreciated
Claire Kelly
17th May 2006
0
CGT and Divorce
CGT and Divorce