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bigduckontax, Accountant
Category: Tax
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I am getting a divorce, we have been separated a year and have

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I am getting a divorce, we have been separated a year and have 9 [properties, am I liable for cgt if we transfer?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year 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 1 year 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 1 year 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 1 year 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 1 year 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 1 year ago.
So are there grounds to contest this like the other party has delayed matters by not cooperating?
Expert:  bigduckontax replied 1 year 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 1 year 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 1 year ago.
I suggest that that may be possible, but I am not a solicitor, a mere accountant!
Customer: replied 1 year ago.
so from a tax point of view it would be best for me to sell my portfolio now?
Expert:  bigduckontax replied 1 year 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 1 year ago.
what would you do if you were in my situation from a tax point of view?
Customer: replied 1 year 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 1 year 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.