How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3004
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am getting a divorce, we have been separated a year and have

Customer Question

I am getting a divorce, we have been separated a year and have 9 [properties, am I liable for cgt if we transfer?
Submitted: 7 months ago.
Category: Tax
Expert:  bigduckontax replied 7 months ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Here is the Gov UK guidance on this subject: 'If you or your spouse or civil partner were living together at some time in a tax year, you can transfer assets between you at any time in that tax year at no gain/no loss. There’s no requirement that you should be living together at the time of transfer.' Thus, providing that you and your other half were living together in a tax year and you transfer within that tax year then it still counts as an inter spousal transfer which is outside the scope of UK taxation. If the transfer takes place outwith these parameters then th situation becomes highly complex. Anderson Strathern Solicitors expamd this further: 'To benefit from relief from CGT on transfers of property between spouses, the court order or agreement that the property should be transferred from one spouse to the other must be made before the end of the tax year of separation. It is also not enough for there to simply be an agreement that a property is to be transferred from one spouse to the other, the transfer will need to be completed within the same tax-year period in order to avoid potential adverse tax implications.' In the absence of exact dates it is difficult to give fuller advice. I do hope that I have been of assistance.
Customer: replied 7 months ago.
Does this mean as I left the marital home at the end of April 2015 and it is past april 06 16 that I automatically get cgt? that doesn't seem fair considering I have a very non amicable ex who does not like to play ball
Expert:  bigduckontax replied 7 months ago.
You said you had nine properties and my reply was geared thereto. As far as your marital home is concerned you have 18 months to dispose of same one way or another and that would run from May 2015. Private Residence Relief (PRR), which relieves CGT at 100% is extended as even HMRC recognise that you cannot get get rid of landed property as quickly as say a second hand car.
Customer: replied 7 months ago.
its the 9 properties I am talking about, I have been to mediation with my ex but it broke down as he is so unreasonable. its been longer than 1 tax year. I am pushing still for him to settle but havnt yet, will I get cgt on transfer of properties? It doenst seem reasonable
Expert:  bigduckontax replied 7 months ago.
Reasonableness and tax law do not go hand in hand. If the transfer is outside the permitted period then CGT will apply.
Customer: replied 7 months ago.
So are there grounds to contest this like the other party has delayed matters by not cooperating?
Expert:  bigduckontax replied 7 months ago.
Not normally although this is moving into the realms of damages rather than tax and you need to consult a solicitor on such matters.
Customer: replied 7 months ago.
Well my solicitor is asking me to talk to an accountant, are you recommending I go after my ex for damages?
Expert:  bigduckontax replied 7 months ago.
I suggest that that may be possible, but I am not a solicitor, a mere accountant!
Customer: replied 7 months ago.
so from a tax point of view it would be best for me to sell my portfolio now?
Expert:  bigduckontax replied 7 months ago.
That depends upon the price you think you will get now or the increased tax liability if the gain is delayed. The answer is as long as the proverbial piece of string. You also need a solicitor's advice as to your position.
Customer: replied 7 months ago.
what would you do if you were in my situation from a tax point of view?
Customer: replied 7 months ago.
what do you mean not normally? is there grounds to dispute a cgt bill - if they allow 18month to dispose of family home surely there is grounds that it takes a similar period to deal with any property
Expert:  bigduckontax replied 7 months ago.
It might do, but the 18 month concession is confined to sole of main domestic residences by extending PRR. I regret I cannot advise you as the the exact course of action you should take. There are too many imponderables like what price will you get now, what better price might you get in the future and the level of CGT in each case.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    1772
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    268
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions