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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3829
Experience:  FCCA FCMA CGMA ACIS
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I am currently in the middle of a divorce. My offer to my

Customer Question

I am currently in the middle of a divorce.
My offer to my wife includes her taking possession of 2 properties, to try to keep my pension as intact as possible:
Property1 in Essex valued at £214994 we have lived in this property for the last 13 years.
Property 2 in Wales valued at 151900 which we have owned for approx 29 years.
Our children who are over 18 years have lived in property 2 over various periods, our son is currently living in property 2 pending a financial settlement between my wife and myself.
If my wife accepts both the properties as a settlement, is it likely she will attract Capital Gains Tax on the sale of property 1. She will live in property 2
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

If she sells property 1 within 18 months of the transfer she will incur no Capital Gains Tax as the last 18 months of ownership are ignored and she has Private Residence Relief (PRR) from the 13 years occupation. PRR removes 100% of the gain from tax.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.

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