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bigduckontax
bigduckontax, Accountant
Category: Tax
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I seperated from my wife in September 2013. If we divorce

Customer Question

I seperated from my wife in September 2013. If we divorce in the next few months what what will the tax implications be for our matrimonial home. We own this jointly and I would like to transfer her half of the property to her, but without having anyone incurring capital gains tax! I own another property outright. I lived in the marital home until September 2013.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. HMRC Helpsheet 281 gives the following guidance: 'Where, as part of a financial settlement on separation, divorce or dissolution, the spouse or civil partner who has ceased to occupy the matrimonial or civil partnership home: • transfers an interest in that home to the other spouse or civil partner, and • the date of transfer takes place more than three years after the time when the spouse or civil partner last occupied the matrimonial or civil partnership home full Private Residence Relief will not be due. ' You thus have until the end of August this year to arrange the transfer and any gain will receive Private Residence Relief which is at 100%. Your question is a tad confusing. You say; I would like to transfer her half of the property to her where I suggest you mean that you intend to transfer your half of the matrimonial home to her and my reply is based on that assumption. Such a transfer would not involve any Stamp Duty Land Tax (SDLT) in England. I do hope that my reply has been of assistance.
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Customer: replied 1 year ago.
Thanks - do I need to have a final divorce settled to do the transfer with Private Residence Relief?
Yes, I meant my half to her!
Thanks
Customer: replied 1 year ago.
Could I do it anyway as we are still married?
Expert:  bigduckontax replied 1 year ago.
Not at all, you just have to transfer before the three years are up to remain entitled to the relief. You can do the transfer at any time and the gain will be relieved at 100% and the transfer not involve SDLT Thank you for your support.
Customer: replied 1 year ago.
Thanks v much for your advice. I can now get on with my day with one less worry!
Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance.

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