Capitol Gains Tax

agt_3

Having got divorced last year the settlement meant that we each took one house each. the house to my x was in my name. I am wondering about CGT i am pretty sure i am due to pay it when x got house however i havnt paid anything yet. what do you think has anyone experiances in this and am i likely to get hassled by the tax man or is it very unlikely they will ever bother. the total is about £6000. If they come and make me pay say next year would i be liable for interest on the outstanding amount

any help appreciated. :eek:

Ian_W

Hi agt & welcome,
The onus is on you to declare any capital gains which might be liable to CGT and you should do so after the end of the tax year in which it occurred. If you fill in a SA tax return you should include details, if you don't you should ask for one. If the taxman finds out you can be liable to interest and penalties of up to 100% for failing to declare, so honesty is the best policy IMO - but your choice.

CGT is pretty complex and there are, can be, plenty of reliefs available depending on the circs which are not overly clear from your post. For eg if you got the house that you're living in, it's your principal residence and in most cases exempt from CGT. If you got a rental property you've never lived in there may be other reliefs. Bit more info is needed really and it might be as well to post the further info on the "cutting tax" thread, rather than here as the folks there are very tax savvy but may not visit this one as often.

HTH.