Capital gains tax and buying ex out of family home

[Nearlyalldone]

Hi all,

I'm aware that the capital gains tax rules are changing in Apr 2023 so that people are exempt from capital gain tax if an ex has moved out of the family home within 3yrs.

However, my ex’s 3yr window will end in autumn 2023 and this gives us only about 6 months to finalise our financial settlement and financial consent order. This would be fine if he was being reasonable/realistic about the finances… but he’s not(!).

My question is, if we miss the 3yr exemption window, who takes the capital gains tax ‘hit’? I’m hoping to buy him out of the family home (once the equity share proportions - offset against savings/pensions/children needs etc -have been agreed). Is it him who will have to pay the capital gains tax out of the amount the I give him for the buy out?

thanks

who moved out?

The capital gains is paid individually if it wasn't the person's main home. If it's still your main home, not your problem

I didn't know it was now not payable for the first 3 years. That's good. Even before then, it's not payable on the whole amount - there are reductions and exemptions to apply first

Thanks @ArcticSkewer - my ex moved out. I’m still in the house with the kids.

It’s been so long that I really want to sort everything out with the finances and finalise the divorce but he’s just been so unreasonable about the childcare arrangements for the kids (we’ve had 4 court hearings in 18 months 😱and he’s basically gotten nowhere with it all…he’s now started threatening to take me back to court again 😩!) that I just know he’ll be unreasonable about the finances too! I haven’t dared to even broach the topic with him yet(!).

Maybe knowing that he’ll lose a chunk of my buy-out money to tax if he misses the 3yr window will make him think straight and not try to argue unnecessarily…