I separated from my ex-wife in Apr 2010.
We sold our Marriage Home in September 2013 as part of the Divorce agreement and I bought a property with my ex wife (because she could not get a mortgage in full) for £156,000 as part of a downsizing plan. The CGT from the Marriage Home we sold to buy this house has been calculated based on the date of separation and associated PPR.
Decree Absolute was 24 Feb 14 and the associated Consent Order has stated that I must transfer half of the ownership to my ex-wife at the end of June 2014. The property is now estimated to still be worth £156,000.
The question I have is whether I am liable for CGT even though no capital gain has been generated and where this is laid down.
Very many thanks.
Replies (2)
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Yes the impending transfer is subject to CGT but as, on your figures, the gain is £Nil the CGT is also £Nil.
But surely his was all gone through by your lawyers and the court before your consent order was granted. The question of whether any tax was payable as a result of the asset transfers in the order would have been fundamental to whether those transfers provided a fair result