CGT due on former matrimonial home, help!

SmallBloke69

I separated from my wife in July 2021 and moved out in October 2021 and have been in rental properties since. I then started divorce proceedings in July 2022. Having read the updated laws effective April 2023 I am unclear if I will need to pay CGT if the FMH is sold as part of the divorce. We are due attend our second court hearing in October and I expect it do go to the third and final hearing which, given the timings so far, will likely be next year. 

If I am due to pay CGT this will have a huge impact on what I receive out of the pot, even if if it stays at 22%. If it aligned with my income tax, as is rumoured, the tax bill will be huge. This seems grossly unfair.

I understand I will have to seek professional tax advice but was hoping someone could share their experience on this matter before I go to court next month.

Mark_d

My understanding is that you'd have to pay CGT on the capital gain since October 2021 ie. the period where the marital home as not been your main residence.

Zoopla can give you an idea on your the value of the property has changed over this period.  My property has lost £20k in value over this time.  If yours has done the same then  no CGT will be payable.

AskAsk

here is an article that will help you

https://watsonmorrisfamilylaw.co.uk/tax-implications-of-separation-and-divorce/

https://www.patrickcannon.net/practice-areas/stamp-duty-land-tax-advisor/sdlt-on-divorce/