Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
I am just hoping for a little bit of advice as my solicitor has my head in a spin and has suggested looking at getting advice elsewhere.
I am currently in the process of splitting with my wife, I moved out of the marital home in April last year. We have a buy to let property, it was bought when we were married as a joint venture but the mortgage was taken in her name alone. As part of the divorce I am allowing my ex to have the marital home and she wants to give me the rental property in return which I plant to sell. However, today I got a letter from my solicitor saying that the full capital gains tax on the property will all be at my feet when the transfer goes through. Is this correct, would the capital gain for the whole period the property has been let out transfer to me even though the transfer into my name will only be taking place next month? The property was bought for £130,000 and now sits at around £250,000. Can I be responsible for the capital gain on all of this amount?
To muddy the waters further, when the split first happened in April I moved into the property for 6 months but have now moved out and am renting it out again. Does this give me a exemption as it was my main residence for 6 months?
The final thing is my Ex is pushing for the transfer to be done in the calender year so I believe she avoids any CGT as the transfer is happening in the same tax year. If the transfer does not happen this year is she then culapbale for some of the CGT?
Sorry for all of the questions but I am in a minefield which I know very little about. Any advice would be greatly appreciated.
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