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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13938
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am in the process of finalising my divorce. I left the

Resolved Question:

I am in the process of finalising my divorce. I left the marital home in July 2014. I moved in to the former matrimonial home in January 2010. I am receiving a lump sum of £27,500. The house was purchased for £240,000 and is now worth circa £300,000. Is Capital Gains Tax due on the £27,500 I receive?
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Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.

Yes you will have a capital gain consideration of the £27,500 gain but there will be some exemption as the period from Jan 2010 to July 2014 along with the last 18 months of ownership will form exemption under the private residence rules.

So in essence only 7 months (of the transfer/sale is completed by July 2016) will be liable so 7/ total ownership of 78 month x share of gain £27,500 = £2467 liable

As this is under the £11,100 annual exemption threshold you will have NIL gain to pay

Let me know if I can assist further

Thanks

Sam

Customer: replied 1 year ago.
Thanks Sam. Can you confirm where did the 7 months come from?
Customer: replied 1 year ago.
I also assume that the period I resided at the property is also exempt but can you please confirm? Thanks. Await to hear.
Expert:  Sam replied 1 year ago.

Thanks for your response

The 7 months comes from the fact that you left July 2014 and if you transfer by July 2016 that is 25 months of the 78 that would need be considered but of the 25 months the last 18 months are exempt (along with the time you lived there) -

So that leaves 7 months out of a total ownership of 78 months to consider for capital gains

Thanks

Sam

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