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JGM, Solicitor
Category: Law
Satisfied Customers: 12081
Experience:  30 years as a practising solicitor.
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I live in Scotland and my husband(of 28 years) married

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Hello I live in Scotland and my husband(of 28 years) married another woman in Egypt causing trauma.My husband seemed bewitched.When he failed to return to be beside me when our son was having another Manic Episode I decided enough was enough and put a claim in for child tax credit as a single parent to supplement our low income.That was over a year ago.
My husband now is trying to make amends and has agreed to sign over the house and the business which we were partners in to my name for his children(the sums involved would amount to the monies I saved with him over the years).He still wants the marriage to continue.
Will this transfer incur any legal expenses such as Capital Gains tax and if so could the transfer be staged over a number of years to make use of the allowance or is there any other way to lessen the tax burden which we cannot afford.(The children are still in education and I have been unable to work due to stress).
kind regards
Are you still married to each other?
Customer: replied 1 year ago.
We are informally separated in the sense that there is a chance of reconciliation.
For tax purposes you and your spouse or civil partner are treated as living together unless:you are separated under a court order, oryou are separated by a formal Deed of Separation executed under seal(in Scotland a deed should be witnessed), oryou are separated in such circumstances that the separation is likely tobe permanent.In each case the marriage or civil partnership must have broken down. If the marriage or civil partnership has not broken down but the two of you do not live in the same house, you are still treated as living together for Capital Gains Tax purposes. In that event, there would be no CGT arising. I hope that helps. Please leave a positive rating so that I am credited for my time.
Customer: replied 1 year ago.
I am concerned that because my claim for child tax credit is as a single person,which equates as a separation that is likely to be permanent(which it was at that time) that this will have monetary repercussions.
Customer: replied 1 year ago.
Meaning if the transfer of property goes ahead they might either demand the money back that i have claimed for child tax credit or demand that I pay CGT.
The child tax credit rules are different from the CGT rules, however. You can claim the CGT spouse exemption even if you are living apart.
Customer: replied 1 year ago.
Do you mean that although I receive Child Tax Credit on the presumption that the separation is likely to be permanent there is still an opening for reconciliation?
However if we do not reconcile it seems we will be regarded as permanently separated and as this has gone on for over one year the CGT charge would be applicable?
Tax credits are based on actual separation.
Customer: replied 1 year ago.
Sorry I`m a bit slow. Could you explain your answer more clearly so that I can understand?
Under CGT rules you can claim spouse exemption of you are not permanently separated even if you are separated as a matter of fact. Child tax rules only relate to the fact that you are separated, permanent of otherwise.
Customer: replied 1 year ago.
I think I`ve got it now.Sorry to have given you a lot of work.Thank-you for the help.
You're welcome: don't forget to leave a positive rating so that I am credited for my time.
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