Capital gains on main residence move after divorce

cfdmaxted

Husband and I are divorcing. We have main family home we’ve lived in. He owns ( in his sole name) a second property which is currently rented. He inherited this from his parents. Since it was valued for probate it has increased in value by approx £70k.  He thinks if he moves into this property as part of the divorce and then say in 1-2 years he then decides to sell, he won’t need to pay capital gains as it would be his main property then.
ive read he is liable if he has not lived in it continually since he inherited.

any advice please- I checked government site but it is not clear in looking in 2 different places 

thanks

Thrugelmir

Does it matter to you if there's a CGT liability or not in terms of finalising the financial aspects of the divorce settlement?  

cfdmaxted

Yes, we are trying to do this in amicable way. If he will face a capital gains later we need to deduct that from outer assets that were dividing 50:50.  

SpiderLegs

cfdmaxted said:

Yes, we are trying to do this in amicable way. If he will face a capital gains later we need to deduct that from outer assets that were dividing 50:50.  

have you received the benefit of any of this capital gain?
If not, then why would you feel the need to contribute to the associated tax bill?

Slithery

cfdmaxted said:

ive read he is liable if he has not lived in it continually since he inherited.

And you would be correct.

cfdmaxted

The rental income from last few years was income we both benefitted from

cfdmaxted

Would it be the whole amount slithery or a sliding scale depending on how long he lives there vs time he owned it? 

Slithery

cfdmaxted said:

...or a sliding scale depending on how long he lives there vs time he owned it? 

Correct.

https://www.gov.uk/tax-sell-property/work-out-your-gain