Capital Gains Tax After Voluntary Repossession

Xannaoh

Hello! I need advice on the following situation:

My ex-husband and I bought a house together in 2012. 

We lived together there for one year and after that we separated, I moved out, and he continued to live there with his new partner. My name remained on the mortgage and title deed. 

Now in 2022 the house was voluntary repossessed and sold. The money that was left after paying the bank, etc  was held in the court office account for 2+ years and now I have finally received 50% of the sale proceeds by the court order.

My question is will I be liable for capital gains tax (the house increased in value about £40,000 since the date of purchase)? I hadn’t lived in that house for the last 10 years, but on the HRMC website it says that a spouse ‘who retains and interest in the matrimonial home’ could claim a private residence relief. As I said, I was on the mortgage, and I also never owned any other house (and still don’t). 

I understand that I need to seek professional help but not sure what kind of professional – an accountant specialising in taxes, a family solicitor, a barrister? 

Thank you very much in advance everyone. 

Bookworm105

are you still legally married to him? yes or no
CGT in the event of divorce has particular rules 

Xannaoh

Bookworm105 said:

are you still legally married to him? yes or no
CGT in the event of divorce has particular rules 

We are divorced and I have very recently remarried (after the sale of the house - not sure if it makes any difference).

Xannaoh

Bookworm105 said:

you separated before April 2023 so are subject to the old rules 
the house was sold before you remarried so that "new" status is irrelevant

the house has not been your main residence for at least 10 years
even if you did not own another property you clearly were not living in the ex marital one as your main home so the sale proceeds you received is liable for CGT (unless your court order says something specific).

see example here, obviously you are Mr A in that context
CG65315 - Private residence relief: separation, divorce or dissolution of civil partnership: computation of gains - HMRC internal manual - GOV.UK (www.gov.uk)

if your court order said something specific re who pays what then that takes precedence 
CG65330 - Private residence relief: separation, divorce or dissolution of civil partnership: jurisdiction of the courts - HMRC internal manual - GOV.UK (www.gov.uk)

Thank you so much for taking the time to advice me! 
I wonder if you know if I could potentially make a claim for S225B TCGA92? The situation seem to satisfy the requirements of the house being a matrimonial home and that my ex-husband lived there until voluntary repossession and it was never rented to tenants, etc. 

Bookworm105

Xannaoh said:

Bookworm105 said:

you separated before April 2023 so are subject to the old rules 
the house was sold before you remarried so that "new" status is irrelevant

the house has not been your main residence for at least 10 years
even if you did not own another property you clearly were not living in the ex marital one as your main home so the sale proceeds you received is liable for CGT (unless your court order says something specific).

see example here, obviously you are Mr A in that context
CG65315 - Private residence relief: separation, divorce or dissolution of civil partnership: computation of gains - HMRC internal manual - GOV.UK (www.gov.uk)

if your court order said something specific re who pays what then that takes precedence 
CG65330 - Private residence relief: separation, divorce or dissolution of civil partnership: jurisdiction of the courts - HMRC internal manual - GOV.UK (www.gov.uk)

Thank you so much for taking the time to advice me! 
I wonder if you know if I could potentially make a claim for S225B TCGA92? The situation seem to satisfy the requirements of the house being a matrimonial home and that my ex-husband lived there until voluntary repossession and it was never rented to tenants, etc. 

then you already know the answer to your original question and presumably at the time of your divorce you were given that info. We don't know if yours included a mesher order or not.