money from a marital split

teacher2mum

hi there I am just filing my tax online and although I did not receive revenue from a property we used to rent I did receive 29k from the sale of my marital home. I moved into the rented property and he sold the house. We settled and I got 29k from the marriage. Do I need to include this on my tax return where it asks if I received money from property etc. it was profit from our main residency and I got to keep the house I am in although it was mortgage free there is a charge on it for my business address. :oThanks in advance.

purdyoaten

Definitely not. Additionally the income from property question relates to property which you rent out as a landlord.

CLAPTON

teacher2mum wrote: »

hi there I am just filing my tax online and although I did not receive revenue from a property we used to rent I did receive 29k from the sale of my marital home. I moved into the rented property and he sold the house. We settled and I got 29k from the marriage. Do I need to include this on my tax return where it asks if I received money from property etc. it was profit from our main residency and I got to keep the house I am in although it was mortgage free there is a charge on it for my business address. :oThanks in advance.

a little unclear




are you saying you and husband had two properties?


one you jointly lived in and one you jointly let out?


has the property you used to live in been sold and 29k profit made?


you are now living in the (formally) rented property?


tax is all about detail and one's needs to know the full story

teacher2mum

technical:

We moved from Essex and bought the house in Cheshire in cash.

As the years progressed we released equity to purchase the house next door to my mums. We spent years renovating it and then rented it out for a while (which I have included in the correct sections of previous tax returns). that meant a small mortgage on marital home.
Then I bought a business property to renovate as a learning centre and had a charge put on this rental next to my mums as that was effectively bought cash with the equity of the house.
However, because the business almost went bankrupt, funding never came off and it sat losing money and hubby never paid a penny to it as it was in my name he washed his hands of the business property. Anyway, I moved out of the marital home and he sold it. After paying the mortgage he then kept 75 k equivalent to the rental house I had moved into and then we both got 29 k from the excess. I spent the money on paying off unpaid mortgage on the business and currently having it converted (slowly) into two flats. He had signed over this second house in my name when we had to use it as a charge for the business (prob where the marriage went wrong) as the bank would not give me the loans on the business if the second house was not in my sole name...Off course if I default they have first dibs at this house!! Does that help guys? Thanks for your help btw, much appreciated.

CLAPTON

assuming the property arrangement were made around the time of your split with husband then
the main home was both your primary residence so has no cgt and you don't need to declare it.
The transfer of ownership of the rented property would be cgt free as transfers between spouses are exempt although you have a liability when you sell.


I'm a little confused as to why you didn't receive half the rent on the property if it was jointly owned.

teacher2mum

Thank you that makes sense too...
I moved out of the marital home May as he refused to and the sale went through 13 months later. Is that still ok. I had been living in the second property all that time and so there was no rental income from that second home that year as the tenant had left in February so that was included on last tax year's statement.

Can you just clarify the last part of your reply please about half of the rent Clapton? I owned this second property in my own name so all the rent and expenses were put through my tax return before I moved in.... No rental has been received since then. If anything I don't put enough receipts through for the business accounts as it has sat there too long empty during this difficult period. I put through the interest on the loans but nothing else atm...Business rates are 50 % as is the council tax...My earnings were very low this tax year as I lost everything when I moved out of my home as I worked from home and my clients refused to come to the other side of town in the evening because of grid lock traffic, I rent a venue a couple of time a week and have expanded into the dyslexia world spending £1000's on courses and qualifications to support myself. Even half way through a master's course so it is not easy. I think next year i'll get an accountant to look at my books and decide as it is getting a bit complicated for me now x

CLAPTON

teacher2mum wrote: »

Thank you that makes sense too...
I moved out of the marital home May as he refused to and the sale went through 13 months later. Is that still ok. I had been living in the second property all that time and so there was no rental income from that second home that year as the tenant had left in February so that was included on last tax year's statement.

Can you just clarify the last part of your reply please about half of the rent Clapton? I owned this second property in my own name so all the rent and expenses were put through my tax return before I moved in.... No rental has been received since then. If anything I don't put enough receipts through for the business accounts as it has sat there too long empty during this difficult period. I put through the interest on the loans but nothing else atm...Business rates are 50 % as is the council tax...My earnings were very low this tax year as I lost everything when I moved out of my home as I worked from home and my clients refused to come to the other side of town in the evening because of grid lock traffic, I rent a venue a couple of time a week and have expanded into the dyslexia world spending £1000's on courses and qualifications to support myself. Even half way through a master's course so it is not easy. I think next year i'll get an accountant to look at my books and decide as it is getting a bit complicated for me now x

I mistakely assumed that the rental property was jointly owned.