How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TaxRobin Your Own Question

TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 14428
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

My husband divorced his first wife 5 years ago. No financial

Resolved Question:

My husband divorced his first wife 5 years ago. No financial settlement was made at that time. He now lives in my home which is solely in my name. The mortgage has now matured on the house he and his ex wife own. She still lives there. They have paid half the mortgage each. He wants to finalise the situation and is proposing to ask her for 25K in exchange for giving up any rights to the house. What would the tax implications be if he did this?Thankyou
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
He would normally pay CGT on a sell to an ex-spouse after the date of the divorce. As this was his main home too he would be allowed Residence relief providing he never claimed any other residence since.
The amount of gain would need to be calculated (but unless his half of the property was less than the 25K he sells for, it is unlikely he will have any CGT.
You only pay tax on any gains made since 31 March 1982. So if he owned the house on 31 March 1982, he works out the gain or loss using its value at that date instead of its actual cost.
Customer: replied 2 years ago.
Thankyou for your reply.
He and his ex wife purchased the house in 1989 for £60,000. I estimate the present value to be about £170,000. Do these figures mean he is exempt from CGT? I look forward to your reply.
Expert:  TaxRobin replied 2 years ago.
No the value would not figure in because they purchased after 1982. His half of the £60,000 (£30,000) is his cost. His gain would be £5,000.
His allowance should make him exempt from CGT on the sale.
Customer: replied 2 years ago.
Thankyou so much for your help.
Expert:  TaxRobin replied 2 years ago.
You are most welcome.
My goal is to give you excellent service.
Your positive rating is thanks enough
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 14428
Experience: International tax
TaxRobin and other Tax Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.