It may be cheaper..Get married
Hi Inabind. How much CGT tax does the sols. think you owe - has he given you a breakdown - if not then I would ask for it?I saw a solicitor today and he advised that I may be liable for capital gains tax. He advised that if I pay my ex less than the value of 50% of the property, I will need to pay tax on the difference, as it will be seen as a gift to me from my ex. Is this the case?
Sorry but this is legally incorrect.
Legally, they are "strangers" , and they co-own a house. If he hands over half the house to her , and doesn't sell it at market rate, its legally a gift and subject to CAT.
I don't know if you say that you have him a gift of half the deposit years ago so it cancels it out. If I were you, I would pay for expert tax advice on this, as it is worth pursuing.
Thanks, yes I will gather all the info and meet with an accountant to see if it helps my cause. I feel a bit more hopeful about it nowI think what your solicitor is saying that you will be receiving a gift of 50% of the value of your house - but as you paid for most of the deposit which was substantial and you have documents to prove this you should contact a tax expert and have all your documents with you.
I am open to correction here: For previous, now separated, cohabiting couples, transfers of assets are treated the same as transfers between married persons (I.e CGT/gift tax etc tax exempt) only under a court order. If no court order, transfers treated as if persons are strangers.
Thanks for your help..Sorry if this is a stupid question but do you know how difficult (ie expensive) it would be to get a court order?I think this is correct and much of the above is beside the point.
Make your agreement with your ex get it made the subject of a court order. No tax implications.
Your solicitor seems a bit out of his/her depth. I think an accountant would be even worse. Any accountant can tell you the tax implications based on a given set of facts, but what the facts actually are in this case is a legal matter. Maybe a more experienced solicitor.
Thanks for the information- is it difficult to get a court order?When house was brought 15 years ago from your mother, was the market value of house 100k Or more?
What is the value of the house now?
I am open to correction here: For previous, now separated, cohabiting couples, transfers of assets are treated the same as transfers between married persons (I.e CGT/gift tax etc tax exempt) only under a court order. If no court order, transfers treated as if persons are strangers.
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