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
    • Olliejoe
    • By Olliejoe 16th Apr 18, 4:53 PM
    • 13Posts
    • 0Thanks
    Olliejoe
    Capital gains tax on former marital home.
    • #1
    • 16th Apr 18, 4:53 PM
    Capital gains tax on former marital home. 16th Apr 18 at 4:53 PM
    Does anyone understand the way CGT works please. I知 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知 due roughly 」110,000. I致e been renting since the split and have no further property and the house was transferred over to my ex husband in 2012. Many thanks.
Page 1
    • G_M
    • By G_M 16th Apr 18, 5:40 PM
    • 43,810 Posts
    • 51,785 Thanks
    G_M
    • #2
    • 16th Apr 18, 5:40 PM
    • #2
    • 16th Apr 18, 5:40 PM
    Does anyone understand the way CGT works please. I知 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知 due roughly 」110,000. I致e been renting since the split and have no further property and the house was transferred over to my ex husband in 2012. Many thanks.
    Originally posted by Olliejoe
    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
    • By Olliejoe 16th Apr 18, 6:15 PM
    • 13 Posts
    • 0 Thanks
    Olliejoe
    • #3
    • 16th Apr 18, 6:15 PM
    • #3
    • 16th Apr 18, 6:15 PM
    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
    • By 00ec25 16th Apr 18, 6:25 PM
    • 6,260 Posts
    • 5,783 Thanks
    00ec25
    • #4
    • 16th Apr 18, 6:25 PM
    • #4
    • 16th Apr 18, 6:25 PM
    I just got confused as I heard about potentially paying capital gains tax on any profit.
    Originally posted by Olliejoe
    yes there is tax when you sell something you own. But you don't own it, he does.
    • G_M
    • By G_M 16th Apr 18, 6:28 PM
    • 43,810 Posts
    • 51,785 Thanks
    G_M
    • #5
    • 16th Apr 18, 6:28 PM
    • #5
    • 16th Apr 18, 6:28 PM
    yes there is tax when you sell something you own. But you don't own it, he does.
    Originally posted by 00ec25
    and there's no CGT on a property that's your nain residence. It's his main residence.
    • Olliejoe
    • By Olliejoe 16th Apr 18, 6:30 PM
    • 13 Posts
    • 0 Thanks
    Olliejoe
    • #6
    • 16th Apr 18, 6:30 PM
    • #6
    • 16th Apr 18, 6:30 PM
    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
    • By 00ec25 16th Apr 18, 6:53 PM
    • 6,260 Posts
    • 5,783 Thanks
    00ec25
    • #7
    • 16th Apr 18, 6:53 PM
    • #7
    • 16th Apr 18, 6:53 PM
    and there's no CGT on a property that's your nain residence. It's his main residence.
    Originally posted by G_M
    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")
    Last edited by 00ec25; 16-04-2018 at 7:01 PM.
    • xylophone
    • By xylophone 16th Apr 18, 7:30 PM
    • 25,176 Posts
    • 14,825 Thanks
    xylophone
    • #8
    • 16th Apr 18, 7:30 PM
    • #8
    • 16th Apr 18, 7:30 PM
    I note use of martial home
    A battleground?
    • Olliejoe
    • By Olliejoe 16th Apr 18, 9:05 PM
    • 13 Posts
    • 0 Thanks
    Olliejoe
    • #9
    • 16th Apr 18, 9:05 PM
    • #9
    • 16th Apr 18, 9:05 PM
    The transfer went through before we divorced. I know he had a timescale to get it done so i知 Presuming this was the reason to avoid CGT in the future.
    • 00ec25
    • By 00ec25 16th Apr 18, 10:57 PM
    • 6,260 Posts
    • 5,783 Thanks
    00ec25
    A battleground?
    Originally posted by xylophone
    it ended in separation / divorce .....
    • Cheeky_Monkey
    • By Cheeky_Monkey 17th Apr 18, 9:44 AM
    • 1,627 Posts
    • 3,338 Thanks
    Cheeky_Monkey
    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???
    I used to be indecisive - now I'm not so sure
    • mistertea
    • By mistertea 17th Apr 18, 10:31 AM
    • 6 Posts
    • 4 Thanks
    mistertea
    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???
    Originally posted by Cheeky_Monkey
    I read it as 50% of the 」120K value increase is 」60K, therefore the OP already had roughly 」50K equity invested in the property from when it was jointly owned.
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

417Posts Today

5,225Users online

Martin's Twitter
  • RT @mmhpi: Third time lucky? After being delayed twice, tomorrow MPs are due to debate our #RecoverySpace proposals in parliament. @helen_u?

  • Just a quick note. I've been overwhelmed by the strength of support by my campaign to stop facebook fake ads today? https://t.co/KexhjVVznY

  • RT @mmhpi: On the eve of tomorrow's #RecoverySpace debate in parliament, we just delivered our 10,000 letters to the Chancellor. People in?

  • Follow Martin