Buying wife out, sell at a later date - CGT due?

berkshireguy

Hi everyone,

I've recently separated from my wife, and we've come to an agreement about me buying her out of her share of the equity on our house. It's within the same tax year of separation, so no CGT is due on either side for this.

However, a friend's accountant who I was talking to has suggested I may be liable for CGT if I sell it later down the line. Say 1-2 years? However, I can't find anything online that refers to this. As far as I was aware, it would be mine, and be no different from any other house sale. It always has been, and always will be my sole and primary residence. I own no other property.

Is there any truth to what he said? And if so, why would it apply compared to say, if I'd never met my wife and bought the house alone.

I'm confused!

00ec25

given the facts you post above, no, no CGT would be due for you since it is, and will remain, your only/main home (divorce notwithstanding)

presumably your friend's accountant was only privy to second or third hand info and may have answered a different scenario correctly or the time line has become confused and the accountant is warning against selling later in the belief it is you who are moving out. in other words there are many variations where the accountant would be right, but not on the facts and intention you list!

berkshireguy

Thanks 00ec25 - that;s reassuring . I was pretty explicit with him about what was going on, but as it was a passing conversation perhaps he did misunderstand!