Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 26 Jul 2024 08:39:51 GMT by L
I purchased a house with my wife in 2020. The price of the house was £118,000, and we purchased with a deposit of £12,000 - which we both paid half of. We both own half the equity but we are currently divorcing and I am transferring my half to her. For this, I will receive a sum of £25,000. Will this be subject to capital gains tax or am I entitled to Private Residence Relief? It is the only property I've ever owned. I have temporarily been living back with parents since late 2023, so the property has still been my main residence for the duration of my ownership.
Posted Wed, 31 Jul 2024 13:10:29 GMT by HMRC Admin 20 Response
Hi,
There are no capital gains implications of a transfer of assets between a husband and wife or civil partners.  
Please have a look at HS281 which covers situations where an individual is divorcing, as the rules changed on 6 April 2023.  
(HS281 Capital Gains Tax civil partners and spouses (2024)).
Thank you.

You must be signed in to post in this forum.