Capital Gains Tax post divorce settlement
9:21 AM, 9th December 2015, 10 years ago
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If I receive a transfer of a rental property as part of a divorce settlement is there a Capital Gains Tax (CGT) liability.
The property was bought for 107,000 and now would sell for about 147,000.
Many thanks
Rachel
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Controversial Landlord Fergus Wilson Sells
Member Since January 2011 - Comments: 12193 - Articles: 1396
9:49 AM, 9th December 2015, About 10 years ago
If the transfer is Court ordered and completed within 12 months of the official separation date then there will be no CGT payable on the transfer. However, the transfer will be deemed to have occurred at base cost for CGT purposes, hence CGT might be payable when the property is sold.
You have not provided sufficient information to determine whether CGT would be payable outside of the circumstances I have described above. For example, was the property ever your principal private residence? If it was, then there will be a lot more questions.
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