Toots is moving forwards..

[Old Dog]

House is always CGT free if it is main res of either spouse, normally for 3 years after WAS leaves.

V

Vanilla, we rent out the house we own and rent another to live in. We want to sell our house. Would we be liable for CGT?

If so, if I move back in, do you know if that makes it not liable from then on?

Sorry to but in Toots.

[Vanilla]

If you rent out your property then the CGT on the period for rental, there is relief given for the period it was your own occupancy.

If you would kindly give me a couple of days I will outline a basic comp for you or point you in the direction. I will also reread your threads to make sure I have grasped your position. I am assuming that you are a UK National and were born here as was your dad. (nerd alert)

Three issues
1. transfer of assets between W & H and the timing (asset held jointly or in common)
2. 3rd party disposal of asset which has a rented period
3. Divorce settlements and movement of assets

Hope this link helps in the meantime:

https://www.gov.uk/tax-sell-property

and this one

http://www.theguardian.com/money/2014/feb/12/how-calculate-capital-gains-tax-sell-home

Vanilla

[edz]

V I think of you as many things, nerd isnt one of them

[Sotto]

V - you are very knowledgeable indeed & thanks for the advice when we know you are so busy.....January almost over!

OD - no problem for butting in...interesting to see the answer :-)

[Old Dog]

Thanks V.
Yes, all UK.
We lived in from Jun 2003 - Jan 2012 and rented it since then.

[edz]

Hi Toots

sounds like your finances are a lot more involved than mine (almost all our money went on s's school fees so we have lots of debt but no properties or large assets) I took on almost all the debt and so am struggling although I'm trying to re factor best I can.

Anyway not about me, with all this, are you doing ok emotionally with it? I think I picked up its a bit of a cause of apprehension, did the talk with the L help at all to settle it?

[Sotto]

I'm not sure Edz. I think if I left it purely to emotion, I would wait much longer than this.

But the fact is, I have enough money for rent for the next 9-12months, and then I run out of cash, unless I earn more. So, I do need to take steps to resolve this. Maritally, we are pretty wealthy, and I also brought significant funds into the R. So, my current situation is a bit ludicrous really - particularly given the cause...

Problem is, I worry H will just say no to separation arrangements. Then I would need to decide, do I file or just live with the financial uncertainty for a bit. My Dad has kindly offered to help - but my parents shouldn't need to do that you know?

I haven't spoken to the L since I saw her a couple of weeks ago, so i'll wait and see what she advises.

[Vanilla]

Thanks V.
Yes, all UK.
We lived in from Jun 2003 - Jan 2012 and rented it since then.

Sell now then About 1.5 years out of 12 for CGT before reliefs. Take gross gain (net sales less net purchase) multiply by 1.5 divided by 12. Owned jointly so half in each return OD and W. Each half treat separately. Look to letting relief. Then annual CGT allowance.

You move back in then your half continues to get PPR, say you live there until 2019 then your CGT portion is 3 out of 16. W half 5.5 out of 16. Letting relief also applies then annual allowace.

Buy W out in tax year of separation no CGT for W (no gain no loss rules between H and W.) you inherit CGT cost of W. Buy W out in later tax year, W pays own CGT and her half is then 100% CGT free for you as you acquired half as PPR and her half PPR throughout as you live there.

V

[Vanilla]

Should have said buy W out through settlement, so W part of asset transferred. Sorry tired.

V

[Sotto]

Didn't get the best sleep last night - awake from 2-4 with H/finance going around in my mind. I can feel myself getting more stressed - having been in a relatively calm place recently.

But it has to be done, and I just need to see what the L says and come up with a plan. There is a pull of emotions and practicality here. And I know that for self preservation (financially) practicality needs to win out.

I guess emotionally, I would rather not 'take H on' about this. I would rather not have to engage with him on what I feel will be difficult stuff. I would rather stay in my place of relative peace. I worry that he will tell me our M is over and he wants a D. I worry that this will lead to the sale of our marital home. All fear talking - and I know the M is dead in the water effectively anyway...

I'll get there, and I know it has to be done. I just have to put on my BGPs, and my business head and deal with it. I'll feel better once it is resolved and I'm secure financially and with "choices" independent of H.

Off to GAL lunch with my BF and her S today. H and finance can go firmly on the back burner!