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Tax Question

  • Gazzauk
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24 Feb 08 #14903 by Gazzauk
Topic started by Gazzauk
I wondered if someone can help
We have the the family home, a 50% stake in the parents home and 2 other houses with no debt
I want to come to a financial settlement with regard to the houses, I understand allowances are in place for CGT, what about the income tax on the sale of the houses in the future, is this taken into account in the cash settlement?

  • Fiona
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24 Feb 08 #14941 by Fiona
Reply from Fiona
The main residency relief from tax on capital gains is allowed for three years after separation on the former matrimonial home only. The implication of any tax on capital gains on the other properties needs to be factored into calculating the settlement. See HMRC Help Sheet;

www.hmrc.gov.uk/helpsheets/IR281.pdf

  • attilladahun
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24 Feb 08 #14953 by attilladahun
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The Court looks at the "real world" so if either you or your spouse have an income tax bill to face then in looking at the Matrimonial pot and each of your liabilities it should be taken into account.

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