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Marriage split - not divorcing - Tax queries
Married over 20 years.
We've worked hard all our life and built up various investments.
The money side and shares is easy to sort, but we had a main home, a holiday home and four BTL's, of the rentals two are owned jointly and one each in our personal names.
18 months ago we decided to separate. No other party was involved.
My wife remained in the main home and I moved out to our holiday home.
We remained on talking terms and we actually work together. Since moving out our relationship has actually strengthened although we both acknowledge that we simply can't live together (although we still work together). I do stay over but have my own bedroom.
CGT is payable on the BTL's if we sell, but we do need to sort out the main home which is jointly owned and the holiday home (which is now my main home) which is owned by my wife.
Am I right in saying that we need to sort out ownership on the our homes within 3 years of separating (with no plans to divorce)? I would need to remove myself from the deeds of the main home and she would need to transfer ownership of the holiday home to me. If done within 3 years this should be CGT and stamp duty free? (No mortgages on neither)
Our wills remain in place in that we leave all to the other, and then our children.
Comments and advice welcome (and yes I know some people find it strange that we continue to work together and have zero plans to divorce)
Comments
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Hello Jelly1282, we have guidance on our website on capital gains tax on separation. Please follow this link:
https://www.litrg.org.uk/savings-property/capital-gains-tax/capital-gains-tax-separation-and-divorce
We hope this information is helpful.
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I would consider your wills, at some point one or other is going to decide that leaving to the other is no longer what they want. I only hope they let the other one know, otherwise things will be very one sided.
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The link was a good read and does confirm we have three years to sort out the property ownership.
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This is something we have discussed. ATM we have mirror wills, but don't see this changing
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