Separated Dads
Capital Gains? - Printable Version

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Capital Gains? - TomTom2468 - 08-14-2019

Hi all

My ex and 2 children are currently living in the former family home which i have 50% share in.  I currently do not pay anything towards the house, only child maintence each month.

My ex plans to sell the home and move up north with the children.  

I have recently been told that i may have to pay Capital Gains on any profit from the house sale.  There is an agreement in place in the form of a deed of separation which states that the proceeds of the house will be split between myself and my ex after solicitor fees, help to buy fees etc.  

Will have to pay Capital Gains?

Thanks


RE: Capital Gains? - andynumpty - 08-17-2019

My understanding is that any profit on a second property is considered as a capital gain. You are allowed an allowance of about £12K per year, but check with HMRC first.
Now, if you moved out and purchased another property and paid the extra stamp duty claiming that was your secound property, your existing property would be Capital Gains tax free.
If you then sell your secound property any profit on that would fall into the Capital Gains bracket.
Thats how I see it anyway but a more knowledgeable person may give you better advice.


RE: Capital Gains? - Fatcat1980 - 08-22-2019

Andy - when you say second property, do you mean one specifically owned? I'm about to buy-out my ex partner. She has been renting for a year but owns 50% of our house. So her rented place is her main residence, but our house is the only property she owns. I don't expect that she'll have to be capital gains tax but I guess it's worth checking.