Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question. The news I have to impart is, I regret, somewhat gloomy.
Yes she is, for the gain made between her acquisition and the sale. Divorce on Line Blog gives a very good summary of what can happen in divorce situations although it is not relevant in this case. You can read it at your leisure here:
However, here is the essential gist:
'While you are married you can transfer property to your spouse without any capital gains tax being paid, as long as you have lived together for at least part of the tax year in which the transfer occurred.
The benefit of this rule is not lost upon divorce but at the end of the tax year in which you separated. Should you separate during the tax year, then any transfer of property made during that tax year is treated as though you had not separated.'
Unfortunately your mother was not able to claim Private Residence Relief as she never lived there. However she is deemed to have occupied it for the last 18 months of ownership irrespective of where she lived.
She will be liable for Capital Gains Tax (CGT) on the gain made between a 2006 valuation and the net selling price. Unfortunately, as your mother never occupied the premises she is not entitled to Lettings Relief either, a pity as this can be up to 40K. However as the last 18 months do not count [see above] so the following formula applies;
Gain x total ownership period in months less 18 / total ownership period in months
a tad over 81%.
CGT is levied at 18% or 28% or a combination of the two rates depending on her income including the gain in the year of disposal. She has an Annual Exmpt Amount of 11.1K to offset this gain.
I do hope that I have been able to shed some light on your mother's situation.