My husband and I have been separated for some time, for several years while living in separate parts of the same home. But I moved out in October 2015, and have been renting since.
The divorce has been plodding its way through since then, and is in it's final stages.
My soon-to-be-ex husband is buying me out of the house.
The transfer of funds is due to go through when the divorce is finalised. No way of knowing how long that will take though.
I know that if it happens before the end of March i'm within 18 months of it not being my primary residence and therefore not liable. But if it doesn't, (and it may well not) will I be liable and if so, how much for?
We bought the house in summer 2009 for £320k and did a further £150k of work on it (it was a wreck). The value of the house now is £815k. Therefore my share of the 'profit' if you like is half of £345k- therefore £172.5k.
Will I be liable for capital gains tax on all of that?
I'm losing sleep on this… I've tried wading through the HMRC website about it but can't make head nor tail of it. There's something about if the house and grounds are less than half a hectare then its exempt? I've no idea what that is in reality. It's an ordinary 1930s terraced house, with a medium sized garden and a garage at the bottom of it.
I'd be massively grateful if anyone could share any knowledge they have on this please. I REALLY don't want to get screwed on tax having just fought so hard not to get screwed on the divorce settlement…
Huge thanks in hope.
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