CGT on properties transfered on divorce

CGT on properties transfered on divorce

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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.

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By johngroganjga
02nd Jun 2014 18:15

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

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Replying to justsotax:
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By DJCOX05
02nd Jun 2014 18:09

Thanks for the advice.

John,

Thanks for the advice.  Because the two properties we sold after we separated made a loss I think CGT was discussed but dismissed.  I have to say that I have only started looking at this in great detail now since my SA form came through.  I am normally pretty savvy when it comes to finances but in the heat of the discussions on divorce at no point did I consider taking advice on CGT.  We attended mediation and I don't recall it being discussed.  Looks like the credit crunch and housing bubble bursting has luckily saved me from a large CGT bill.

I think there is a lesson for all here.

 

D

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