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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I'm in the process of getting a divorce. My ex left the marital

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I'm in the process of getting a divorce. My ex left the marital home two years ago and is living with his mother. We have a son who is fifteen years of age. As we have 6 years left to pay on the mortgage we have decided that we will not sell our property until our son reaches the age of 21. My ex and I both jointly own the house and both pay half the monthly mortgage repayments. My question is about capital gains tax liability. I've received correspondence from my ex's solicitor informing me that my ex has said that he shouldn't be liable to pay CGT and the costs should come out of the proceeds of the sale of the house and this has been written into the draft financial consent order for the courts. I'm disputing this as I think he is liable for any possible CGT and that I should be exempt from paying it. The house hasn't been transferred into my name. Please could you advise me as to whether I'm exempt from CGT and my ex is the one who is liable. Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Of your husband's share of the gain, he will be exempt from CGT for that part of the gain covered by the period he lived there and the last 18 months of ownership. Assuming you live there until you sell it and have done so for the entire period of your part ownership, your share of any gain will be exempt from CGT.

Your husband's lawyers might consider something like a Mesher Order which you can read about here to protect him from CGT as far as possible, given that he left two years ago.

I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.

Hi

Thanks for this. Can you just clarify for me that CGT should not come out of the proceeds from the sale of the house specifically my share. Many thanks

Expert:  TonyTax replied 2 years ago.
CGT is a personal liability. The lawyer handling the property disposal should split the proceeds in the agreed proportions. I've seen cases where the parties shared the tax liability but its not compulsory.

The divorce settlement will usually take account of a perceived disadvantage to one of the parties but not always.
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