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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11554
Experience:  30 years as a practising solicitor.
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My husband and I separated in 1994, at the time we jointly

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My husband and I separated in 1994, at the time we jointly owned house, he came off mortgage so it was just in my name, then in 2004 I went bankrupt and as our daughter was only 12 yrs old, my ex husband bought the house thru the bankruptcy court so my daughter and I could still live in it. I paid the mortgage amount to him every month. In nov 2012 he re mortgaged on a buy to let mortgage, again I paid the mortgage every month. House was sold Dec 2013, will he be liable for capital gains tax and is there any allowances for his daughter being under 18 and living in house as when I applied for housing benefit I was told I would not get it as this was the ex marital home
Submitted: 3 years ago.
Category: Scots Law
Expert:  JGM replied 3 years ago.
Thank you for your question.
1. He will be liable for capital gains tax if the house was not his only or main residence which was the case. However, he will have certain reliefs and allowances that he can set off against any gain for the last 10 years or so and that might wipe out his tax liability. He will have his personal allowance of £10k or thereby. He will also be able to offset expenditure such as the mortgage payments. He will also be able to get letting relief up to £40000.
2. There is no allowance for his daughter living in the house. That is not relevant.
3. I would have to query the decision of the council in relation to Housing Benefit. Whether or not the house is the former marital home should make no difference where you are divorced and your husband becomes your landlord. You may want to have this checked in more detail.
I hope this helps. Please leave a positive response so that I am credited for my time.
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