"Living together" for purpose of CGT & Divorce

Divorce resulting in order to transfer FMH to wife. Is CGT due?

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H moved out of FMH in 2019 and has rented since. W and kids still in FMH. A court has just ordered that the FMH be transferred from H to W with W buying H out for £25k or 20% of the equity. H concered that if not no gain/no loss he will have to pay CGT on the market value minus costs which would effectively wipe out a large amount of the money he received from the small divorce settlement. Although living apart are they classed as living together as not yet divorced or separated by a court order?

Replies (9)

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Scooby
By gainsborough
07th Oct 2021 18:26

Standing on a train so excuse brief reply but check out CG65356 in CG manuals and S225B TCGA 92 as hubby living in rented accommodation.

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By Matrix
07th Oct 2021 19:34

I don’t know what FMH is and whether he would have to pay CGT on the market value less costs. I would see if there are any exemptions available first.

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Replying to Matrix:
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By Wanderer
07th Oct 2021 19:39

I took it as Family Matrimonial Home.

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Replying to Wanderer:
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By Paul Crowley
07th Oct 2021 19:52

I took it a First Matrimonial Home
I love a guess game in my own time, But staff making up their own abbreviations really does wind me up
R & R being one of the worst

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Replying to Matrix:
By johngroganjga
07th Oct 2021 21:38

It’s Former Matrimonial Home.

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Replying to johngroganjga:
RLI
By lionofludesch
08th Oct 2021 07:00

johngroganjga wrote:

It’s Former Matrimonial Home.

Agree with John.

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By Paul Crowley
07th Oct 2021 19:58

Back to the question
Seperation that is likely to be permanent springs to mind
Do not delay beyond the end of tax year of permanent seperation
Courts and solicitors just do not understand CGT rules, probably never will.

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By Rammstein1
08th Oct 2021 09:21

There did used to be something called a Mesher Order that husband could qualify for.

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