Marital separation

My wife and I purchased the property next door as a future pension pot in Feb 2016, due to the fact that our home was overcrowded (4 adults - 2 dependants) my daughter (20) and Son (17) moved into the property whilst we altered and decorated it to rent out. Unfortunately my Wife and I separated March 2017 and to keep the family together (next door) she moved into the property along with a dependant (daughter) and my son moved back with me. I informed the Tax office of the situation due to our personal working tax and Child Benefits. If we now sign the deeds of my home into my name and the other property into my Wife's name will we be liable for any CGT. Ie.. the second property has 99pct been occupied as a main residence for my wife and daughters. In fact we have made no gains due to the fact that all mortgage and bills were paid by us for the second property instead of renting it out as initially planned.

{Display name amended - Admin]

Hi,

Although the properties have not as you were separated for more than 3 years at the time of the transfer, capital gains will be liable for any increase in the value of the properties. You will be able to claim private residence relief for the period that you have lived in the properties to reduce any charge due. The bills and mortgage are not deductable expenses when working out any gain.

Private Residence Relief (Self Assessment helpsheet HS283)

Thank you.

Thank you very much for your advice Admin32. Please if possible explain HMRC's definition of separation, I am asking this so that I can correctly ascertain dates. Am I best seeing a Financial advisor, Accountant, Tax advisor or solicitor to calculate my CGT and private residence relief. Again thank you again for your help

Hi,

This is when spouses stop living together without getting divorced and yes you would likely need to use the services of a solicitor and/or accountant regarding any capital gain.

Thank you.