Capital Gains Tax on shares from divorce

[LizTaylorsFabulousTurban]

As part of my divorce settlement I received some shares. I would now like to cash these for a house deposit but I am confused about calculating capital gains tax on them.

The .gov calculator asks me for the price I purchased these at, is that zero? I've searched for this online and the only advice on can find is aimed at someone transferring shares to a STBEX spouse. I want a ball park figure to allow me to see what I can afford etc.

It depends on whether the cost basis reset to the value they had when you received them or if you have to consult the original purchase records at the stock brokerage who executed the buy. It shouldn't be zero.

I'd email your divorce solicitor to find out which it is.

Oh blimey - yes I think I had better, I have no idea. So if it shouldn't be zero then I am potentially paying less CGT than the calculator said... Thank you!

You're welcome. Sorry I couldn't give you a more specific answer, but I'm a Yank and the tax rules could be different here.

But yes, not zero.

I was able to fire up my google-fu and it looks like they were transferred at market value and whilst they have increased slightly since the financial order, not significantly enough to have CGT consequences. Obviously I will confirm this with a financial advisor but it is a big help in knowing what I can afford in terms of property now - thank you very much.

You're welcome, and good luck shopping for your new property!