Capital Gains Tax post divorce settlement

by Readers Question

3 years ago

Capital Gains Tax post divorce settlement

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Capital Gains Tax post divorce settlement

If I receive a transfer of a rental property as part of a divorce settlement is there a Capital Gains Tax (CGT) liability.divorce

The property was bought for 107,000 and now would sell for about 147,000.

Many thanks



Mark Alexander

3 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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