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questions re capital gains tax

  • posywo
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  • New Member
01 Jun 07 #520 by posywo
Topic started by posywo
sorry - this is a bit long and involved - but I think you will need all the info to be ablwe to answer! - any thoughts would be w
elcome - I have a SAYE scheme – I am expecting to it to be worth about £50,000. – I have agreed to split this 50/50 with my husband. The contributions will have been £15,000 at the time of maturity – so a profit of about £35000. We are separated, and he lives elsewhere in a rented property, but we are still legally married.

The SAYE is in my name, through my employer, and the contributions come directly from my wages

How can we best avoid paying capital gains tax?
If I transfer half of the shares into my husbands name (ie I dispose of an asset) will I be liable for CGT, even though he is my husband, because we are not living together.?

If I give half the maturity value to my husband, can I offset the whole amount of the contributions against my share (so effectively I will have made a capital gain of only £10,000, after allowing for the cost of the shares, whereas my husband will have made a capital gain of £25,000?) or do we both have to take account of the amount paid – so effectively we both have a capital gain of approx £17,500?

It is likely that at around the time of the maturity, I will be ‘buying out’ my husbands share of the equity in the marital property – by remortgaging in my own name (so effectively I will be buying the house from myself and my husband. )

In respect of this, I will be paying my husband approximately £25,000 – this is in effect the profit he has made on the property . Because he left me a year ago, this has obviously not been his only residence during this period – however, we lived in it together for about 13 years previously . Will my husband incur a CGT liability on this money ?(it would seem a little unfair surely?) – and does it make any difference that he may accept slightly less than the value of half the equity (eg, there may be £60,000 equity, half of which is his, but he may agree to accept £25,000 instead of £30,000 because that may be all I can afford)

Neither of us has consulted a solicitor, as we feel that we are able to work things out amicably between us – both in regard to finances and the future of our daughter (who lives with me, but sees her father regularly) We have agreed an amount of maintenance which we both feel is fair and reasonable – and we really want to avoid paying all our hard earned money in legal fees! – Neither of us is looking to ‘take the other for all we can get’, we just want to be in a position where we can both move on with the minimum disruption.

  • vanessa
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  • Senior Member
  • Senior Member
02 Jun 07 #538 by vanessa
Reply from vanessa
I don't know anything about captital gains concerning shares but with propety you have no capital gains in the first 3 years after it is no longer the main residence. there is also a discount available taking into consideration the time lived there prior to leaving. phone the inland revenue they are very helpful.

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