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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10270
Experience:  FCCA FCMA CGMA ACIS
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I had a joint mortgage with my ex partner (never married or

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I had a joint mortgage with my ex partner (never married or in civil partnership) for our shared home and only property. When we parted, I moved into rented accommodation, she took on the mortgage in her own name only and continued to live there. The property is now about to be sold (she is moving into rented accommodation). As per previous cordial agreement between us, the proceeds of the sale will be split between us. Do I have to pay Capital Gains Tax on my share (around £40,000)? If so, are there any options to minimise the tax?
JA: What are the assets or property for this capital gain?
Customer: The house.
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: No

No, you are selling your sole or main domestic residence so Private Residence Relief (PRR) is available which relieves Capital Gains Tax (CGT) at 100%.

Customer: replied 13 days ago.
Just to clarify, although I moved out and my name was no longer on the mortgage at the time of sale, PRR still applies for my share of the proceeds? Also, is PRR applied automatically or do I need to apply for it?

No, PRR is applied automatically.

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Customer: replied 13 days ago.
Splendid, thank you for your advice.

Delighted to have been of assistance.