Divorce capital gains tax advice

MaryAllen

Hi there

Myself and my husband are getting divorced. We bought a pub together approx ten years ago, but the whole property was put in my name. As we go through the divorce, I need to transfer 50% of the shares to my husband. Would he/ I have to pay capital gains tax on this?

Would be grateful for your help.

Thanks

Mary

TBagpuss

You need to speak to an accoubntant.

However, the answer is probably yes, you will will have to pay CGT.

If it is actual shares rather than a transfer of the proprty, and you can do it before the end of the current tax year, then I think you can elect not to pay, and then when he sells ordisposes ofthe pub he will pay CGT as though he had owned it from day one. (this would also be true if it is the actual priperty, but I doubt you could get the transfer done that fast if you haven't started yet)

However, you can only use that in the tax ear in which you separated, which means you'd bneed to get it done before the end of this month!

Either way, it is reasonable to take into account the CGT liability in working out what the total assets are and how they should be split.