tax and divorce

Shortbread_McFiver

hi, hope someone can help me out.

When 2 people get divorced are they treated as separate individuals for tax purposes from the time the divorce is final?

My ex and I split last year and divided the proceeds of a house sale between us shortly afterwards, and signed an agreement to the effect that we were both happy with the settlement. I am about to buy another property with my bit of the cash.

Am I now a completely separate individual for tax purposes from my ex, and do I need to inform the HMRC about the divorce/splitting of the assets? Am just wondering if there's anything I haven't thought of.

Thanks

p00hsticks

In many ways you were treated as two separate individuals for tax persons even when you were married - you each had your own individual tax allowances, own ISA allowances, own CGT allowance etc.

I'm not an expert, but off the top of my head, the main restriction was that married couples can only have one property between them as their PPR, and the main benefit is on the ability to transfer assets such a shares etc between each other and pass on the IHT band on death.

getmore4less

Don't forget the maried persons allowance it still exists for people born before 6 April 1935

http://www.hmrc.gov.uk/incometax/married-allow.htm

Shortbread_McFiver

thanks for the replies. I don't know if I'm worry for nothing, but am getting a bit confused about capital gains tax.

We owned the property jointly, and took half the proceeds in cash when it sold. Is there any tax liability here, or any limits to the amount of cash you can take tax-free?

sorry...am a newbie to this

bryanb

There's no CGT on sale of your principal private residence.