A solicitor has just introduced me to a client for whom she is finalising a separation agreement from her ex-partner.
They bought a property in joint names in 2014 where they lived together until she left in Feburary 2019, so there is CGT to consider because of the new 9 month rule. They have agreed that he will pay her £35000 and have her name taken off the mortgage in order to transfer the property into his sole name. This figure is much lower than half the equity because they both agree he has paid much more than her for the property. The current value is £550K and the mortgage £270K
So for CGT, should her share of the gain be based on 50% of current value because of joint ownership or 12.5% because of what they have agreed she will actually receive?
I feel it should be the latter and CG70230 would seem to be back this up, but sadly no declaration of trust was prepared when they bought the property.
Thanks for any input.