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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I received an amount last year as part of a divorce settlement.

Resolved Question:

I received an amount last year as part of a divorce settlement. Do I need to include it in a tax return
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Can you tell me what the terms of the divorce settlement were please.
Customer: replied 1 year ago.
Yes, I received half of the proceeds from the sale of the family home. My share amounted to £63,000
1/2 share of bank accounts. My share being £2050
I chose to have my share of the pension capitalised. Total received was £30,000Therefore total received was £97050 last year. I have been in almost full time employment since divorce and my annual salary is £20000
Expert:  TonyTax replied 1 year ago.
There will be no tax to pay on the cash from the bank accounts. If you received a cash lump sum from the pension in lieu of entitlement to a part of your former spouse's pension at a future date or in exchange for other assets, there will be no tax to pay on that. If you didn't own a share of the house, then the cash payment you received is tax free. If you did own a share of the house, then unless you lived there for the entire period of ownership or it was sold within 18 months of your moving out, part of the gain if you made one will be subject to CGT. The first £11,100 of gains made by an individual in ant one tax year are tax free. Take a look here for information on the main home and CGT. I hope this helps but let me know if you have any further questions.
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