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CGT due or not? - Unusual scenario

Hi

A woman remarried her ex-husband 5 years ago but has no rights to the house she lives in with him. She voluntarily gave up any legal right to the property when leaving 15 years ago, prior to a divorce. The building society has a document signed by her to that effect. She has inherited a house worth around £95k and will look to sell it. It is the only house she owns although she doesn’t live in it. Is it liable to CGT on the sale?

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12th Feb 2019 20:27

Yes.

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By DJKL
12th Feb 2019 20:51

It is not her residence so she cannot claim PRR.

However if only recently inherited will there be a gain, the valuation when inherited will surely be pretty close to current market value if little time has elapsed?

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12th Feb 2019 20:58

If you visit an accountant, they will be able to discuss with you various issues that this question raises - including the potential for tax planning to reduce the amount of tax that might become due on disposal of the property.

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14th Feb 2019 14:37

I agree with DKJL. However, even if some years ago she gave up any right to the house in which she now lives with her former[and current] husband, her subsequent remarriage and new joint occupation may give her some rights. This is a legal question and a competent lawyer should be able to give guidance

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