Separating in the next tax year

[serendipity909]

Hi, I have had legal advice saying that it is unlikely my husband and I's home would incur CGT if we separated now, but given how close we are to the new tax year it might be wise to wait til after 6th April. Our house is mortgage free and hasn't changed much in value as we only bought it about 8 months ago. I would be keeping the house but paying him an amount for the deeds to be transferred fully to my name.

I am trying really hard to wait but I am so miserable and time seems to be moving so slowly.

Am I really creating a problem financially for myself if we split up sooner than 6th April ?

If the property is your main home then Capital Gains Tax shouldn't apply at all. Maybe have a look at the GOV.UK site to do a little research of your own.

I would get a second opinion on that tbh. First of all it's your primary residence so shouldn't attract CGT at all. They do sometimes investigate if there is a fast turnover to check that it isn't somebody flipping houses for profit, but you will still be living in it and a separation is a genuine reason for a partial change in ownership. Secondly, you are just separating, you will still be married at the time that you change the deeds and transfer of assets between husband and wife does not have tax applied.

Potentially he could have CGT implications if there is a long delay between him moving out and everything being settled, it it doesn't sound like in this case it should be an issue.
You wouldn't have any CGT implications at this point as it would remain your principle private residence and you would just acquire the other 50%.

Thank you for the replies. It is so invaluable to have somewhere like this to ask questions and advice so really thank you.
The Gov website does more or less say this but just doesn't phrase that it is always the case. I believe it said that the person had to have lived in the house at some point in the tax year somewhere too.
I didn't ask my solicitor too much about this as I figured it wasn't a long wait but things only seem to be getting worse at home now.

I think (currently paying attention to the issue as there's property in the marital assets, but zero expertise) that this shouldn't be an issue as long as there is a sufficient paper trail showing you both li ved there, so not lots of bills etc registered to a different address.