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Is there CGT if transfer from joint to sole ownership because of separation

(9 Posts)
HiTetty Mon 10-Aug-20 12:21:09

Hello, just asking if you can share your experience or knowledge of the above. property was last used for renting. Originally as residential, but rented since 2010. My understanding is that no CGT applies if transferred is in same tax year the financial consent order is signed. Much thanks.

OP’s posts: |
DishingOutDone Sat 15-Aug-20 11:33:49

That's such a good question @HiTetty - I am just thinking how I could deal with a similar situation myself this morning - broadly similar. I am not sure you could get an answer here, but maybe this bump will help.

If not move thread to legal?

HiTetty Sat 15-Aug-20 12:08:21

Thank you DishingOutDone. Very hard to get the clear answer from freely available source, so I was wondering if others that had experienced it could tell. Currently in joint name, but agree to take my name off this one, and his name will be off for the main family home. I am hoping someone can share here. Good luck with your process.

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millymollymoomoo Sat 15-Aug-20 12:16:31

Is it the main primary residence or is it a second property?

HiTetty Sat 15-Aug-20 12:21:27

I could not find the legal thread. What is under?

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NotReallyALondoner Sat 15-Aug-20 12:43:53

It depends on when you permanently separated. There should be no CGT under the spousal exemption if you lived together in the same tax year as the property is transferred. If you separated before April 2020 then CGT may be due but you should get some main residence relief for the period before you let it out. www.gov.uk/government/publications/husband-and-wife-civil-partners-divorce-dissolution-and-separation-hs281-self-assessment-helpsheet/hs281-spouses-civil-partners-divorce-dissolution-and-separation-2016

DishingOutDone Sat 15-Aug-20 14:47:46

Click on "topics", click on "other" then its called Legal Matters.

HiTetty Sat 15-Aug-20 15:25:06

NotREallyALondoner, Thanks much. We are living separately since May 2018, apart from night stay twice here when no transport option to go back. We plan to sign financial order early Sept before applying for decree absolute soonest after financial order is signed. I have had a look at the article you attached above (much thanks), but still uncertain. I feel that I may not need to pay CGT in the above scenario, but I may need to find a paid advise for certainty.

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HiTetty Sat 15-Aug-20 15:25:46

DishingOut, thanks for this. Will try copy now.

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