Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • yapp3410
    • By yapp3410 25th Jan 19, 9:35 AM
    • 6Posts
    • 0Thanks
    yapp3410
    Child Maintenance and Capital Gains Tax
    • #1
    • 25th Jan 19, 9:35 AM
    Child Maintenance and Capital Gains Tax 25th Jan 19 at 9:35 AM
    Hi all - any semi-authorative advice on this problem would be most helpful:

    Basically - will my ex-wife receive any money when I get a windfall from selling shares in my employers company?

    1. I currently earn 30000, but my child maintenance payments are based on my 2017-2018 salary of over 40000! Due to me receiving a one-off bonus of 1250 in Dec 2018, CMS have stated that my actual salary is 31250 and does not trigger their crazy 25% variance rule!

    2. So I am resolved to be overpaying child maintenance for the forseeable future - and the sum will not be correct unless I recieve an immediate 10508 payrise!

    3. However, my current employer has issued key workers with actual shares in the company. These share do will not provide dividends, and are currently valueless.

    4. The company is expected to be valued and sold for >100million in the next couple of years, at which time all share issues must be sold - meaning I will hopefully receive a windfall of over 100000.

    5. My question is - as the sale of these shares will be subject to Capital Gains Tax - will they be treated as Income by the CMS or will they not even know about them through annual reviews? I simply DO NOT WANT my ex-wife receiving a huge payout for doing nothing - the system has screwed me over constantly and none of the money paid to her will be seen by my son.

    Any advice on this complicated subject would be amazing - thanks!
Page 1
    • Comms69
    • By Comms69 25th Jan 19, 9:42 AM
    • 10,366 Posts
    • 12,541 Thanks
    Comms69
    • #2
    • 25th Jan 19, 9:42 AM
    • #2
    • 25th Jan 19, 9:42 AM
    You know this would all have been avoided if you'd just paid maintenance voluntarily...


    Is your ex-wife not raising your child(ren)? - hardly doing 'nothing'
    • yapp3410
    • By yapp3410 25th Jan 19, 9:57 AM
    • 6 Posts
    • 0 Thanks
    yapp3410
    • #3
    • 25th Jan 19, 9:57 AM
    • #3
    • 25th Jan 19, 9:57 AM
    Excuse me - I have actually been voluntarily overpaying child maintenance to my ex wife for the past 9 years - she has already been paid maintenance for the start of this new claim period, and I can not even ask them to take that extra payment into account.
    • pmduk
    • By pmduk 25th Jan 19, 9:59 AM
    • 10,134 Posts
    • 7,759 Thanks
    pmduk
    • #4
    • 25th Jan 19, 9:59 AM
    • #4
    • 25th Jan 19, 9:59 AM
    I simply DO NOT WANT my ex-wife receiving a huge payout for doing nothing
    Originally posted by yapp3410
    Any money is to be used for child support. Children are very expensive to raise.
    • Comms69
    • By Comms69 25th Jan 19, 9:59 AM
    • 10,366 Posts
    • 12,541 Thanks
    Comms69
    • #5
    • 25th Jan 19, 9:59 AM
    • #5
    • 25th Jan 19, 9:59 AM
    Excuse me - I have actually been voluntarily overpaying child maintenance to my ex wife for the past 9 years - she has already been paid maintenance for the start of this new claim period, and I can not even ask them to take that extra payment into account.
    Originally posted by yapp3410


    Why would the CMS be involved if you pay voluntarily.
    • yapp3410
    • By yapp3410 25th Jan 19, 10:03 AM
    • 6 Posts
    • 0 Thanks
    yapp3410
    • #6
    • 25th Jan 19, 10:03 AM
    • #6
    • 25th Jan 19, 10:03 AM
    I know they are - thats why I have been overpaying child maintenance for 9 years, to the tune of thousands of pounds.

    I was still overpaying on the very day I got the letter from the CMS - I was more than happy for them to come up with an official calculation to stop any ambiguity - however, there policy of assessing Gross Weekly Income is a joke at best, and if you search this forum you will find many people being legally forced to overpay with no course for redress.
    • yapp3410
    • By yapp3410 25th Jan 19, 10:06 AM
    • 6 Posts
    • 0 Thanks
    yapp3410
    • #7
    • 25th Jan 19, 10:06 AM
    • #7
    • 25th Jan 19, 10:06 AM
    I left the Armed Forces in Aug last year and was lucky enough to find a new job nearer my son - however, my new salary was over 10000 less than my army pay.

    My ex-wfie was given transparent notice of this and I told her I would have to reduce my maintenance payments - but was still overpaying from Aug 18 to Jan 19.

    Simply - she went to the CMS in order to get an official calculation as is her right.
    • tacpot12
    • By tacpot12 25th Jan 19, 10:07 AM
    • 2,996 Posts
    • 2,723 Thanks
    tacpot12
    • #8
    • 25th Jan 19, 10:07 AM
    • #8
    • 25th Jan 19, 10:07 AM
    As they will be subject to Capital Gains Tax and not Income Tax, they will not be seen as income by CMS but as capital. CMS use HRMC's records of your income, so if unless the 'bonus' appears on your pay slip, HMRC and CMS won't see it as Income.

    There are things that your ex-wife can do to try to have your CMS payment increased, but there is no guarantee of success for her as previous rules on capital assets have been changed.

    Given that she is looking after your children some of the time, I would suggest that you invest a proportion of your windfall in income-producing shares and pay your Ex-Wife the income "for the benefit of the children". I would suggest that the proportion that you invest should be roughly the same as the proportion of the time that the children spend with her. Once your children at 18, you can divert the income to support them thorough university if they are going, and once they have no need of parental support, you can spend the capital on yourself or them. Investing in the right assets should see the capital value of the assets increase as well as producing a useful income. You can adjust the proportion to reflect the degree to which you feel you are overpaying.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always check official information sources before relying on my posts.
    • yapp3410
    • By yapp3410 25th Jan 19, 10:09 AM
    • 6 Posts
    • 0 Thanks
    yapp3410
    • #9
    • 25th Jan 19, 10:09 AM
    • #9
    • 25th Jan 19, 10:09 AM
    Thank you for that reply - most helpful. Of course I will seek full financial advice nearer the time.
    • daddydodo
    • By daddydodo 30th Jan 19, 3:37 PM
    • 46 Posts
    • 19 Thanks
    daddydodo
    Increase your pension payments then you'll cross over the magic 25% threshold and qualify for a CMS reassessment
    • DennisTenus
    • By DennisTenus 25th Jul 19, 10:18 AM
    • 457 Posts
    • 53 Thanks
    DennisTenus
    There are things that your ex-wife can do to try to have your CMS payment increased, but there is no guarantee of success
    What things?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

153Posts Today

2,215Users online

Martin's Twitter