CGT lump sum divorce

Rachna_83

The market value of house is £155,000. Split more in my favour due to being primary carer for children. Ex also has kept his pension. 
Yes I did raise with my solicitor why he nor my barrister mentioned CGT. He has said he is not qualified to comment on the tax issue! 

[Deleted User]

Rachna_83 said:

The market value of house is £155,000. Split more in my favour due to being primary carer for children. Ex also has kept his pension. 
Yes I did raise with my solicitor why he nor my barrister mentioned CGT. He has said he is not qualified to comment on the tax issue! 

I thought that would be the case with the split - solicitors like to close the pension issue rather than some form of pension sharing years into the future. Doesn’t surprise me regrading the CGT as I said before. But, as per my first post, no tax to pay so all good. Note the point regarding declaration though.

Rachna_83

My solicitor is saying to delay application for the decree absolute until the actual lump sum is received in case it ends up back in court. Though the order is clear that is lump sum not payed it goes straight to sale. For CGT purposes would it make any difference to delay the decree? I.e. remain married for longer?

Rachna_83

Also date of disposal would be decree date not court order date?

Jeremy535897

For every month the disposal is delayed, the main residence relief covers a smaller part of the capital gain. After about an extra year, tax would start to be charged. The date of disposal is the date you are unconditionally obliged to transfer the property, not the date of divorce. Remember that if it becomes a problem, HS281 says:

"However, the former matrimonial or civil partnership home can be treated as the only or main residence of the transferring spouse or civil partner from the date his or her occupation ceased until the earlier of the:

• date of transfer
• date on which the spouse or civil partner to whom the property is transferred ceases to use it as his or her only or main residence

However, relief for the same period can’t be given for another property (except for the final 18 months of ownership of the matrimonial or civil partnership home) so this concession may not be the best choice in every case."

[Deleted User]

Strictly the date of disposal is the date upon which the sale becomes unconditional but I don’t see how the date would affect you unless it occurs in a different tax year.

Whether married or not is irrelevant- whether or not the property is your main residence is what is important.

MalMonroe

I just came to say I think you should have received more than 62.5% if you are the primary carer for your children. PLUS your solicitor should have pushed for a share of his pension. And I don't think you should have to pay any CGT either. When my marriage ended I stayed in the house and gave my ex just £4k for his share because I was being left to raise children on my own. I'm now retired and receive a small part of his pension too but he doesn't lose out. 

Your solicitor sounds about as much good as mine when I divorced, in fact I had three but they were all as useless as each other. And slow, very slow. Goodness only knows how they get away with charging as much as they do.