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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I recently sold a house, it wasn't my main residents

Resolved Question:

Hi
I recently sold a house, it wasn't my main residents and therefore will be subject to CGT. Some years previous this property formed part of the calculation for a divorce settlement. it appears to me that i am being penalised twice. is there any tax relief/offset available on the divorce settlement?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise why you think you are being penalised twice?
The property would have been valued for divorce financial settlement purposes.

Many thanks
Customer: replied 2 years ago.

I am being taxed on a gain but that gain or part there of has already being paid to my ex partner.

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.

Your gain should be calculated using the valuation at the time of divorce settlement as the cost price so you are paying tax on the increase in value since then.

Confirm you are doing so.. if that is the case then CGT payable would be correct.

Many thanks
Customer: replied 2 years ago.

My tax adviser used the original cost of the house £70K not the cost that was used to settle the divorce. If I understand you correctly then I can calculate the gain based on the valuation at the time of divorce?

Expert:  taxadvisor.uk replied 2 years ago.
Geraldine, thank you for your reply.

You should use the valuation figure at the time of divorce as the cost price and calculate CGT payable based on it.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Thank you kindly, I realise that I need to get a proper tax adviser.

Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.