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Is tax chargeable on a divorce settlement?
Legacy_user
Posts: 0 Newbie
in Cutting tax
I've posted before about my brother getting separated from his wife. She is to buy him out of the marital home and he will receive £100,000.
Brother went to mortgage broker yesterday to find out how much of a mortgage he would be likely to get. During the course of conversation the broker said that out of the £100,000 there would of course be the solicitors fees to be paid plus £1750 to Gordon Brown.
What on earth could this be for surely the government don't tax divorce settlements?
Can anyone tell me if this is true?
Brother went to mortgage broker yesterday to find out how much of a mortgage he would be likely to get. During the course of conversation the broker said that out of the £100,000 there would of course be the solicitors fees to be paid plus £1750 to Gordon Brown.
What on earth could this be for surely the government don't tax divorce settlements?
Can anyone tell me if this is true?
0
Comments
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Are you sure he didn't mishear - maybe he was talking about VAT on the solicitor's fees (ie "solicitor's fees plus 17.5% (VAT) to Gordon Brown")?0
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tax only chargeable if you cross the stamp duty threshold - £100k is below the 1% threhold of £125k - else his ex would've been liable{Signature removed by Forum Team - if you are not sure why we have removed your signature please contact the Forum Team}0
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tyllwyd wrote:Are you sure he didn't mishear - maybe he was talking about VAT on the solicitor's fees (ie "solicitor's fees plus 17.5% (VAT) to Gordon Brown")?
Yes that makes more sense. Thanks
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