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CGT on disposal/divorcing couple/deeds 1 name only

Does it help if joint beneficial ownership can be shown retrospectively?

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Apologies if this has been covered before or is covered in HMRC manual - on a quick look I can't find it and would be grateful to know if anyone has come across it before.

House was bought after marriage but put in his name only (I don't think the reasons for that poor decision are relevant). Mortgage in his name only, although they both contributed.

Common-ground understanding between them was and remains that beneficial ownership was joint.

No Form 17 nor any other paperwork about this understanding. But it could be established retrospectively, by reference for example to payments she continually made towards the mortgage and other expenses, & by the fact they now agree that the disposal proceeds are to be more than 50% hers.

Separation a few years ago, he moved out, sale now imminent. PRR on usual terms for him.  But is this calculable on 100% gain because title was in his name solely, or only 50% because they agreed continuously that they were beneficial owners?

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By Montrose
26th Oct 2020 12:01

This is a legal question. In matrimonial litigation, the interest of a wife in a former matrimonial home is frequently a live issue.

The purchaser's solicitor in this case is likely to address this question specifically and ask for confirmation that the vendor's spouse [?ex-spouse] has no interest in the property. This may be an oppoprtunity to set the record straight.

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By SteveHa
26th Oct 2020 12:55

There are two issues.

He could have been holding 50% the property in trust for her, and a trust can be created verbally (IHTA S43).

However, property transactions MUST be recorded in writing (according to the Law of Property Act 1925).

Definitely a legal question.

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