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Capital gains tax on former marital home.

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Olliejoe
Olliejoe Posts: 34 Forumite
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in House buying, renting & selling
Does anyone understand the way CGT works please. I’m due my 50 % share of the equity on my former marital home. The house has made £120,000 since my ex and I purchased it. I’m due roughly £110,000. I’ve been renting since the split and have no further property and the house was transferred over to my ex husband in 2012. Many thanks.
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  • G_M
    G_M Posts: 51,977 Forumite
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    Olliejoe wrote: »
    Does anyone understand the way CGT works please. I’m due my 50 % share of the equity on my former marital home. The house has made £120,000 since my ex and I purchased it. I’m due roughly £110,000. I’ve been renting since the split and have no further property and the house was transferred over to my ex husband in 2012. Many thanks.
    So it sounds like he's selling his house. Why would you be getting anything?

    But assuming some arrangement was agreed (which he sticks to) whereby you get 50% if/when it is sold, I don't see CGT being an issue:

    * you moved out, and you 'lent' him £X (50%).
    * he kept the house - it's his main residence so no CGT when he sells
    * he sells, and repays you the loan.
  • Olliejoe
    Olliejoe Posts: 34 Forumite
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    Sorry yes i!!!8217;m due 50% that was the divorce agreement and on the consent order. I think he!!!8217;s going to try and buy me out and keep living in the house.

    I just got confused as I heard about potentially paying capital gains tax on any profit.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    Olliejoe wrote: »
    I just got confused as I heard about potentially paying capital gains tax on any profit.
    yes there is tax when you sell something you own. But you don't own it, he does.
  • G_M
    G_M Posts: 51,977 Forumite
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    00ec25 wrote: »
    yes there is tax when you sell something you own. But you don't own it, he does.
    and there's no CGT on a property that's your nain residence. It's his main residence.
  • Olliejoe
    Olliejoe Posts: 34 Forumite
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    Thank you. I!!!8217;ve been getting in a muddle with it.

    Hopefully now he!!!8217;ll agree to the settlement and carry through what!!!8217;s on the consent order.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    edited 16 April 2018 at 7:01PM
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    G_M wrote: »
    and there's no CGT on a property that's your nain residence. It's his main residence.
    you had already made that point, there was no need for me to repeat it as that was not what was confusing the OP

    i was emphasising the fact one cannot be taxed on the sale of something one does not own.

    I have ignored the possible implications of the timing of a) "the split" b) OP moving out (2012?) and c) the date of the financial order as to whether the transfer of ownership from OP to the ex took place whilst the no gain no loss rule applies to a married couple during the year of the separation.

    Otherwise there might be a CGT liability for the OP given the transfer of ownership to the ex in 2012. In the absence of a precise timeline, we can't say for sure if it ceased to be OP's main home at the same date as that transfer, which may or may not have been subject to the no gain no loss rules. (I note use of martial home so assume legal marriage rather than "partner")
  • xylophone
    xylophone Posts: 44,412 Forumite
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    I note use of martial home

    A battleground?:eek:
  • Olliejoe
    Olliejoe Posts: 34 Forumite
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    The transfer went through before we divorced. I know he had a timescale to get it done so i’m Presuming this was the reason to avoid CGT in the future.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    xylophone wrote: »
    A battleground?:eek:
    it ended in separation / divorce ..... ;)
  • Cheeky_Monkey
    Cheeky_Monkey Posts: 2,072 Forumite
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    I'm confused! You say that you are due to receive 50% of the equity in the house which has 'made' £120k since you bought it i.e. that's the equity, but then say that you are due to receive £110k from the sale???
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