Capital Gains Tax - second property - Divorce 1 February at 3:10PM in Marriage, relationships & families 3 replies 222 views

MrsResearch

I'm supporting my parents with their divorce and the financial separation is likely to trigger Capital Gains Tax. I'd like to understand more about it. 

My first question is have I got the right forum or do I need to be somewhere else?

Now onto some of the detail, there are two properties.

House 1 - purchased in 2000 with a huge extension added over the following couple of years. This was their main residence logged with the HMRC from 2004 - 2020.  
This property is currently in both names and is likely to be signed over to my dad, who might end up selling it. He lives here at the moment.

House 2 - purchased in 2015. This property has only ever been in my mum's name and was rented out. She is now living here. This is currently logged as their main residence with the HMRC.

They separated in the summer last year. I've got a lot more information that I can share if necessary.

Can anyone help me to understand the situation better and even how I go about calculating this? I will be very grateful as I feel quite overwhelmed and never thought I'd be in this mess, supporting my parents who are in their late 70s.

Savvy_Sue

Does this help?

https://www.gov.uk/money-property-when-relationship-ends/

tightauldgit

I'd say in this case it's probably worth getting some professional advice. 

TBagpuss

Have they started divorce proceedings yet? Rules and GCT and transfers within divorce are set to change in April 2023 and while they should make sure to take proper advice, it may well be in their interest to delay until then (or to check the position before drawing up / submitting any order)