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Capital gains tax & Divorce
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EF88
Posts: 2 Newbie
in Cutting tax
I am currently negotiating a divorce which will include the transfer of equity from a property to myself. In return I will be giving him a lump sum, taking on shared debts and covering all legal expenses related to the divorce and property.
I’m trying to find out if I will be liable for capital gains tax on the equity transferred to myself.
And if so what will it be a percentage of: the total value of equity, the lump sum, the equity minus lump sum and expenses etc.
In reality I am gaining nothing as I paid the deposit and all mortgage payments (and can prove so). But in theory I am gaining half a property for a sum below market value (as calculations are taking the mortgage payments, debts and expenses into consideration).
Does any of this matter?
It is my primary residence as of April 2019 and was our joint primary residence from March 2010-Nov 2015.
It was rented in-between while we were abroad
We stopped living together in the previous tax year, but have no legal separation as yet.
It is the sole property that either of us own, or will own in the near future.
Neither of us have ever claimed another primary residence for tax or over purposes in the UK or abroad.
Thank you in advance for any advise, links or even suggestions of an accountant to use. I’m currently quite overwhelmed by how many things to take into consideration and the choice of professionals available.
Just to note I also posted this in Relationships as I wasn’t sure where to. And I have been a contributing member of the years, just being locked out of an old email means I needed to create a new account.
I’m trying to find out if I will be liable for capital gains tax on the equity transferred to myself.
And if so what will it be a percentage of: the total value of equity, the lump sum, the equity minus lump sum and expenses etc.
In reality I am gaining nothing as I paid the deposit and all mortgage payments (and can prove so). But in theory I am gaining half a property for a sum below market value (as calculations are taking the mortgage payments, debts and expenses into consideration).
Does any of this matter?
It is my primary residence as of April 2019 and was our joint primary residence from March 2010-Nov 2015.
It was rented in-between while we were abroad
We stopped living together in the previous tax year, but have no legal separation as yet.
It is the sole property that either of us own, or will own in the near future.
Neither of us have ever claimed another primary residence for tax or over purposes in the UK or abroad.
Thank you in advance for any advise, links or even suggestions of an accountant to use. I’m currently quite overwhelmed by how many things to take into consideration and the choice of professionals available.
Just to note I also posted this in Relationships as I wasn’t sure where to. And I have been a contributing member of the years, just being locked out of an old email means I needed to create a new account.
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