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familylawexpert, Family Solicitor
Category: Family Law
Satisfied Customers: 311
Experience:  Substantial experience (14yrs +) in divorce, financial cases, cohabitation, pre-nuptial agreements and civil partnerships.
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As part of a divorce settlement I have a 20% share in my ex

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As part of a divorce settlement I have a 20% share in my ex marital home. I currently rent but am planning to buy myself a new property soon. I am worried that upon a future sale of either my ex marital home or at some stage my new home I will be liable for Capital Gains Tax.
I am actually keen to pass my 20% share to my two children before I buy a new property for myself. Will this have a tax impication?
My name is Mac. I can help you with your question.
It is correct that if/when you realise your 20% interest in the ex family home, that will be a chargeable event for capital gains tax. Your liability to capital gains tax will be assessed as a gain over the original cost of your share, with an exemption for the proportion of time that you lived in the house plus an extra 18 months.
Gifting your 20% share to your children would be a chargeable event just like a sale, so it would make no difference to the principle. The value of the gift would be assessed as the market value at the time of the gift.
I hope that is helpful.
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