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Posted Wed, 22 Mar 2023 07:50:34 GMT by Jo Johnston
I am in process of selling a house in a divorce and my solicitor has asked will I need to pay CGT. Its worth about £250,000. The profits will be split and tge mortgage is paid off. I currently live in rented and have no other property's. Advice in line so complicated
Posted Mon, 27 Mar 2023 15:40:28 GMT by HMRC Admin 19
Hi,

If you have not lived in the property for the whole period of ownership, there may be Capital Gains Tax to pay if the £250,000 value is more than what you paid for it.

Paying off the mortgage is not an allowable expense when working out the gain. You can see further guidance here:

Tax when you sell property

Thank you.
Posted Mon, 27 Mar 2023 19:46:32 GMT by Jo Johnston
Thank you for your reply but can someone explain to me abit more regarding " if you lived away from property for up to 3 years" I had to move out as my husband wouldnt and go to rented for last 2 and half years. Seems unfair I may have to pay CGT when I had to pay £800 rent all this time and my husband has lived all that time rent free.
Posted Fri, 31 Mar 2023 08:55:44 GMT by HMRC Admin 25
Hi Jo Johnston,

Please have a look at the guidance for private residence relief: 

HS281 Capital Gains Tax Capital civil partners and spouses (2022)

It allows for someone to live away from their home because their work requires them to, or the nature of their job requires they stay in job related accommodation, or they

move into a retirement home, as they can no longer live at home.  

Help sheet HS28 advises on sepaaration, divorce and dissolution. 

Thank you. 


 

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