CGT

[Canoes01]

CGT is payable on the family home when it is sold. In mediation we agreed that it would come out of the equity before the equity was split between us.
Now the financial agreement is being written up by a solicitor, my ex is saying that the CGT needs to come out of my share of the equity after it is split. As I had no choice but to move out of the house and in with relatives several years ago, due to there being not enough equity to house both parties, I feel it should come out of the whole amount otherwise the split of equity is not the equitable amount that was agreed, based on our needs, etc. Any thoughts?

I'm not a lawyer but found this, which seems really unfair

https://www.litrg.org.uk/tax-guides/savers-property-owners-and-other-tax-issues/capital-gains-tax/capital-gains-tax-0#:~:text=has%20moved%20out.-,What%20happens%20when%20the%20home%20is%20sold%3F,may%20be%20liable%20to%20CGT.

your solicitor can hopefully advise on special exemptions?

I thought the rules changed relatively recently specifically to deal with this scenario?

What are the new CGT rules for divorcing couples?
From 6 April 2023, the periods are:

• for up to three years after the year in which the couple cease to live together as spouses or civil partners; and.
• for an unlimited period where the transfer occurs as part of a formal divorce agreement.

See below. The new rules don’t apply if it’s been more than three years since separation. I think it should be a shared cost seeing as an agreement was made for the children to remain in the family home, meaning I couldn’t house myself. Thanks for the replies.

Above, not below!

You’re telling the wrong people op

Erm I'm no tax expert but shouldn't it only be the gain arising on your share since you moved out that is calculated? So that may be half of not very much. Plus you'll have the £6,000 CGT allowance.