Hi, thank you for your question. In relation to the home, is it currently in joint names with your ex-wife?
Thanks for confirming. Depending on how long she has been vacant from the property, there could potentially be a CGT liability in relation to her share when you come to sell the property or have it transferred. This will require formal calculation depending on the value of the property and increase in value.
I appreciate that this may not be the answer you would have hoped for, but if you found this information helpful please provide a positive rating using the stars at the top of this page. I will not be credited for answering your question without a positive rating. Thank you,
Are you planning to transfer the home into your sole name and is she planning on purchasing a new property (if so when?)
Thanks for confirming. When exactly did you formally separate and when did she move out of the home?
Thanks for confirming. Under the CGT rules, where, as part of a financial settlement on separation, divorce or dissolution, the spouse who has ceased to occupy the matrimonial or civil partnership home:
1.Transfers an interest in that home to the other spouse; and 2. the date of transfer takes place more than three years after the time when the spouse or civil partner last occupied the matrimonial or civil partnership home full Private Residence Relief will not be due.
However, the former matrimonial home can be treated as the only or main residence of the transferring spouse from the date her occupation ceased until the earlier of:
1. the date of transfer; or
2. the date on which the spouse whom the property is transferred ceases to use it as his or her only or main residence.
As she is not in a position to purchase another property she will not have a further main residence for CGT purposes and therefore her relief.
In the circumstances your worst case scenario is that you would be liable for CGT starting from 3 years after October 2015 (therefore October 2018) and you should hope to have the property transferred to you by this time to avoid any liability.
I hope this assists you. If you found this information helpful please provide a positive rating using the stars at the top of this page. I will not be credited for your question without a positive rating. Thank you.
CGT will be based on the value of her share of the property/transfer depending on when it is transferred to you. She would be liable only in relation to her share of the property and any capital gain that is made on the property.