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Sam, Accountant
Category: Tax
Satisfied Customers: 7512
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Basically the scenario is as follows: I have two serious

Customer Question

Basically the scenario is as follows:
I have two serious offers for the FMH house I currently live in on the table.....
1. For the house and land of £550k ('cash' buyer) - ie. the entire property as described under the title deed
2. For the house only of £530k - ie. excluding the land.
it is possible that the land in its own right could fetch in excess of 30k, possibly even up to £50k...
So selling the land and house seperately could realise a greater value - say in excess of £560k to £580k
The FMH house is a freehold property, the title deeds include the 5 acre paddock – although the paddock does not adjoin the house - they were not bought separately but as part of the same deal, with a single price paid for the house and paddock. We paid about £150k for them.
This is my principal residence although it I don’t think my ex wife could claim as such. This is however a jointly owned property.
If the land was to be sold separately it would require a transfer of part and new land registery stuff, but I understand this is relatively simple.
My wife lives in another property jointly owned (previously a rental property - worth about 240k) and has done since May 2012 when we separated - I think it would be classed as her principal residence. Again this is jointly owned. When the FMH house is sold I transfer my interest in the property she lives in to her by order of the court. We paid about £80k for that house.
Her parents paid off the mortgage on the house she lives in – this was about £97k
The financial settlement is all part of a court order from a final FDR hearing held in December 2015. Therefore I have no choice but to comply.
We are now officically divorced. Decree absolute granted on April 26th, 2016
So the questions are....
If the FHM house and land were sold as one entity - which they currently are - would there be a CGT Liability for me? for her?
1. If the the house was sold and then the land was sold - would there be a CGT liability for me and for her?
2. If the the house was sold and then the land was sold in a separate tax year - would there be a CGT liability for me and for her?
3. When I transfer the house to my ex wife will I have a CGT liability - will she?
4. Finally what is the current rate of CGT and what would I be allowed as a personal allowance in any one tax year? I currently earn in the region of £25k per year.
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.

Would you please expand on 'FMH? and also how big is the whole plot upon which it stands?'

Customer: replied 1 year ago.
Sorry Keith. Former Matrimonial Home (FMH), it stands on a reasonable plot - probably about 1/10 of an acre tops. The 5 acre paddock (solely for agricultural use) to be sold with the property is located about 1/3 of a mile away and was part of the original farm which was sold of in bits years ago. The house we own is the original farmhouse and the land was sold with it.Hope that helps, sorry its all a bit complicated!!
Expert:  bigduckontax replied 1 year ago.

I have opted out, one of my colleagues may be better placed to advise you.

Customer: replied 1 year ago.
ok keith, is that in my original price? if i was to call would i speak to you or some one else? Nick
Expert:  bigduckontax replied 1 year ago.

Yes it is, I hope one of the other experts will soon pick up your question.