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Posted Fri, 24 Mar 2023 09:18:28 GMT by Paul Wells
Having separated, my Ex and son continued to live in a house that I owned until it was sold once my son was over 18, I had to live elsewhere after the separation (for obvious reasons), I had no income from the property, I was then renting and owned no other property. At the time of sale my solicitor didn't mention any CGT liability and I now have a letter stating that as I didn't live at the address I should have paid CGT on the sale value and as it was more than 30 days since completion I'd have penalties to pay on top.. Should I have been made aware, and should I be liable for CGT as I couldn't sell the property at the time of separation (when there would have no been no liability for CGT) due to my son needing a stable house to live in?
Posted Tue, 28 Mar 2023 11:03:52 GMT by HMRC Admin 17

Hi,
 
You may be subject to capital gains tax on your share of the property, following its disposal. 

Have a look at the guidance at :

Capital Gains Tax  .

 You will be able to claim private residence relief for the period of time (counted in months) that the property was your main residence,
plus a further 9 months, over the total number of months you owned the property. 

This relief, reduces the gain arising from the disposal. 

The calculator in the capital gains section, will help you work out if you have tax to pay. 

If you do, you can move to the next section to register for a capital gains account, through which, you can report and pay the capital gains tax due. 

Only after you have reported the capital gains tax, can you appeal the penalty .

Thank you.

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