call-to-action-mobile

Capital Gains & Marriage Breakdowns

Sat 27 Oct 2018

Here Andrew Stant, Partner at accountancy firm Johnson Murkett & Hurst of Ashby de la Zouch, talks to us about the effect on capital gains tax if a partnership breaks down.

"My last article covered the very basics of capital gains tax on the sale of let property.

One issue which often arises is the tax position on marriage breakdown. Tax will rarely be high on the agenda for the couple to think about but it should always be considered where the couple own a let property.

One spouse may agree, as part of a divorce settlement to transfer their ownership to the other spouse but unless this is done in the same tax year that the couple separate, the donor spouse may incur a charge to capital gains tax.

This may be a problem if the let property has been owned for many years and would have resulted in a gain had it been sold on the open market. The position is more problematic if the married couple own a number of rental properties and in this case it may be advisable to consider transferring the ownership in different tax years to make maximum usage of the annual capital gains tax exemption of £11,300. The financial settlement on divorce will often factor in the possible capital gains tax payable on the sale of a property but it is a cost that may be mitigated with some careful planning."

For more in depth advice in this area, contact Andrew on 01530 412877.

 

"I have nothing but positive feedback and to date have been massively impressed with the service being provided by the team at HJ, excellent communication and concise timely information provided. During my search in recent weeks, this company have been the stand out Agency to date and am hopeful to use services moving forward. Keep up the good work! With thanks!"
N Cook

News Archive

November 2018

Budget update on Capital Gains Tax

November 2017

Capital Gains & Marriage Breakdowns

November 2017

A Day in the Life of a Letting Agent

November 2017

Are your CO alarms safe?

November 2017

Cavity & Loft Insulation

October 2017

New Sales rules ahead

October 2017

Another ARLA pass!

September 2017

Rocket Ron's Handy Tip

Helpful Advice for New Landlords

Should I use an Independent Financial Adviser?

Capital Gains Tax explained

Q. & A. - As a landlord, how can I prepare for the forthcoming EPC changes?

A day in the life of a letting agent

No options for Landlords over HS2

September 2017

Howland Jones Landlord Wins Free Insurance!

September 2017

Tenant Fee Ban update

Fire Safety Regulations

VAT on Rented Properties

How will the Housing White Paper affect you?

A day in the life of a letting agent

Rocket Ron's Handy Tip

Q. & A. - My tenants have fallen out and one of them wants to leave the property, can they?

Council Tax - Who Pays?

September 2017

Summer Pests

September 2017

Rocket Ron's Handy Tip

Can I get my property back?

A day in the life of a letting agent

Making Tax Digital, from Andrew Stant, Johnson Murkett & Hurst accountants

September 2017

Noisy Neighbours?

Howland Jones Sales

September 2017

Tax Update for Landlords

Minimise Void Periods, Maximise Profitability

Problems with Rabbits?

What is a Stopcock & what does it do?

Letting Agents can save Landlords money!

September 2017

How to become a landlord

Q. & A. - Is "Professionally Clean" really necessary?

September 2017

Ban on Agent fees to Tenants

Post Brexit – the rent arrears risk

Ensuring you serve a valid section 21 notice on your tenant

The Mysterious Case of the Purple Toilet Seat

New EPC Rules

September 2017

Do you want to be a landlord in 2017?