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Matrimonial Home and HMRC

  • dan1k
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05 Apr 12 #321811 by dan1k
Topic started by dan1k
Hi, I was hoping someone could give me advice, as I have recently found the need to represent myself due to costs.
At the recent FDR hearing the judge directed that the former matrimonial home, which is worth 1.2million and has equity of £350,000, be sold and the money used to rehome myself and my 2 children.
Since the hearing my husband has come forward with a £190,000 tax bill (some of which is estimated) which he has said he cannot pay and HMRC will order a sale of the house to meet this debt. He has said that if this does not happen then they will make him bankrupt. He is a property dealer who cleared £215,000 last year, according to his tax returns.
Can anyone give me advice as how to proceed? As this is the main asset this tax bill will be quite a blow to the possibility of us being rehomed (we are currently in rented accommodation)

  • maisymoos
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05 Apr 12 #321818 by maisymoos
Reply from maisymoos
Did you move out of the FMH?

Whose name is the property in?

Is the tax bill a debt accrued prior to separation?

I think you need to get some legal advice on this situation asap

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05 Apr 12 #321829 by dan1k
Reply from dan1k
Thank you for your reply.

We both moved out of the home 2 years ago and rented a smaller property and rented out the former matrimonial home.
We are both now living in separate rented accommodation.
The house is in my husband''s name, however I have a 6 year old and a 8 month old baby.
I think some of the debt was before, however much has been accrued in the last year post separation.

  • Young again
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05 Apr 12 #321836 by Young again
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Hi dan1k,

As the judge has said the FMH is to be sold to meet the housing needs of you and your children and your stbx has come out with this bill after the FDR (when at the FDR both sides are to have provided all the financial info), you need to ask why your stbx felt unable to make full, frank and clear disclosure at the FDR and stress that this tax bill may not be accurate.

You need copies of HMRC correspondence to check its veracity. Where did all the money go that attracted this tax? Ignoring interest and late payment charges etc this represents tax on about £300k income. Does his From E show this?

You say some of the tax bill is estimated; ie made up. If he can''t account for the income or capital accruals that attracted all this tax I really think you ought to explore the possibility that he has hidden the money and convince the court of it.

In this way the court could still order the sale of the FMH (ask that you have sole conduct of the sale) and for you to have the money and for HMRC to find his hidden money. They have far more experience of searching for hidden funds than you or I and are quite successful at it.

Good luck!

YA

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05 Apr 12 #321849 by dan1k
Reply from dan1k
Thank you YA for your response, you have interpreted the situation as the judge did at the FDR.

The house goes on the market on 9 April and I am supposed to be involved with the sale.
I have checked his tax returns and he has a current bill of £66,000, for which a repayment schedule of 1,400 a month has been set up, but since we separated he has not paid any. (The rest of the tax is approx and not due yet).
As a result of this not non-payment, HMRC have issued him with a ''warning of bankruptcy action'' dated 14 March.
The problem I have is that although I know he has other assets (land in USA and 15 race horses) if the HMRC demand this tax they will try and get funds from the house as it''s the easiest and most obvious asset.
The judge instructed that the house is sold quickly and profit given to us, but I fear the HMRC may get there first!!

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05 Apr 12 #321857 by cookie2
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You need professional advice. It is not sensible to try to DIY this. The kind of figures you are talking about are too hight o risk messing it up.

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