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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7829
Experience:  FCCA FCMA CGMA ACIS
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I have been separated from my wife for 5 months and now live

Customer Question

This is Andrew Webster. I have been separated from my wife for 5 months and now live some way away. We have 2 rental properties and are wanting to put them in individual names rather than joint names. Are there are capital gains tax implications or is there a way to avoid any such charges. The properties are owned outright by the 2 of us.
JA: What are the assets or property for this capital gain?
Customer: sorry. I dont understand your question.
JA: Anything else you want the Accountant to know before I connect you?
Customer: no
Submitted: 14 days ago.
Category: Tax
Expert:  bigduckontax replied 14 days ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

 

If the adjustment is completed within the tax year of separation there is no liability to Capital Gains Tax (CGT).

Customer: replied 14 days ago.
So can I just check. We separated mid September 2019. Do we need to complete the property split then before 5th April 2020?
Customer: replied 14 days ago.
This is my last question for now. If I need further help afterwards, I can organise a call. But text reply on this will be fine. Please reply? Thanks
Expert:  bigduckontax replied 14 days ago.

To avoid any possibility of CGT, yes. Mark you, the level of tax is likely to be small and you each have a non cumulative Annual Exempt Amount (AEA) of 12K to offset this.

Customer: replied 14 days ago.
Thank you Big Duck
Expert:  bigduckontax replied 14 days ago.

Delighted to have been of assistance.

 

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