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Divorce/separation

Here you'll find divorce help and support from other Mners. For legal advice, you may find Advice Now guides useful.

Original poster

Capital Gains Tax On Sale of Marital Home?

8 replies

JaffaCakesMum · 31/01/2023 20:36

I left the family home following an affair by my ex. Within a week they had moved in the affair partner. This means that I have been renting a flat for over a year. When the family home is sold and I get half the equity will I have to pay capital gains tax on my share of the equity as I not been resident there for what could be 2 years by the time the house is sold?

OP posts:
2022NewTimes · 01/02/2023 08:10

@JaffaCakesMum After 9 months you become eligible for CGT - dont forget though you can claim for all the months you lived there and 9 months after you moved out as PPR. Its a shame you cant move back in before you sell as you are allowed to out of the house for three years for any reason BUT you have to move back in for this to apply. This going affect me too as by the time we sell the house I will have been out of it 2 years

2022NewTimes · 01/02/2023 08:11

@JaffaCakesMum Husband said I could move back in to save money BUT I'd rather shoot myself 😂

Morph22010 · 01/02/2023 08:18

It’s not a cliff edge where cgt becomes payable on the whole amount, it is proportioned so that you still get relief for the time you lived in house plus 9 months in proportion. Then the first £12k of gains are tax free anyway, although this goes down to £6k from April. Let me know some rough figures for cost when you bought house expected selling price, when you bought and when you estimate it will be sold and I’ll calculate ball park figure of tax to give you an idea

SheepMaySafelyGaze · 01/02/2023 08:19

Would OP have to physically move back in or could she have it as her postal address?

Kazzyhoward · 01/02/2023 08:22

SheepMaySafelyGaze · 01/02/2023 08:19

Would OP have to physically move back in or could she have it as her postal address?

It needs to genuinely be their "home" so actually living there is necessary.

Original poster
JaffaCakesMum · 01/02/2023 10:39

@2022NewTimesI'm not sure who I'd shoot first, him, her or myself, lol.

@Morph22010 the house was bought for £80k 15 years ago, we took a loan out about 6 years ago of £18k to put a conservatory on. The house is probably worth £130k now. Hopefully the house will be sold by the end of the year.

@

OP posts:
Morph22010 · 01/02/2023 12:19

JaffaCakesMum · 01/02/2023 10:39

@2022NewTimesI'm not sure who I'd shoot first, him, her or myself, lol.

@Morph22010 the house was bought for £80k 15 years ago, we took a loan out about 6 years ago of £18k to put a conservatory on. The house is probably worth £130k now. Hopefully the house will be sold by the end of the year.

@

Ok based on those figures if when sold you had owned the house for 16 years and had lived in it for 14 years you would have ppr relief for the 14 years plus 9 months. This works out to a gain after ppr relief of £4000 so if you only own 50% this is halved so you are well under the limit for paying cgt

Morph22010 · 01/02/2023 12:20

Obviously this is based on info you’ve stated

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