When partner buys u out - do u pay tax on it?

Even if the divorce has already been done and dusted?
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well then it wouldn't form part of the divorce settlement.

In our divorce law a transfer of a property between spouses is treated as a gift for tax purposes.

A transfer which forms part of divorce order (whether a settlement or a court decision) is exempt from CAT.

A transfer that takes place afterwards and was not ancialliry to a divorce order would be taxable.
 
IN fairness the OP was clearly referring to a divorce and not to something happening after a divorce, clubber just went off on his own tangent.

and it is not treated as a sale of PPR..
 
Stifster said:
IN fairness the OP was clearly referring to a divorce and not to something happening after a divorce, clubber just went off on his own tangent.
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Nope:
shootingstar said:
isnt gift from spouse to spouse taxed once it hits 38k per annum or something like that anyway...

however they are no longer spouses.. divorce is finalised and completed
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and it is not treated as a sale of PPR..
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Fair enough - I did say that I wasn't sure.
 
The reason why it isn't treated as the sale of a PPR is for the simple reason that it might not be the PPR, the parties might be separated and living apart for several years.
 
At this stage it might be helpful if the original poster could clarify the actual situation in this case more precisely?
 
ok ok relax everyone...

Right here goes, man & wife divorce last aug 07. wife moved out of family home oct 06 to reside with b/f at his home. man stayed on at family home and is soley paying the mortgage (always has been the sole payer since beginning of mortgage). settlement of assets schedule for court hearing march 08. man will be remarrying in aug 09. fiance now living with man also in the house in question.

My question was - when amount has been agreed and ex wife is paid off saying for a sum of 100k - 150k. will ex wife have to declare this money in any shape or form? Can she bank the 100 - 150k all for herself or will there be a tax deduction of ANY description?
 
To make this easier:

H and W either divorced last August or are divorcing in March 2008. I doubt that they were divorced without doing the asset distribution unless they divorced without legal assistance, then suddenly realised the problems of being non spouses for tax purposes in the division of assets.........Jaysus.

Anyway, moving swiftly along, It is anticipated (I thinks?)that H will buy out wifes share of their joint family home as part of the final Divorce settlement. As they will be regarded as spouses, divorcing but dealing with spousal assets, by Revenue the wife will not pay any tax. At all. Unless they are Divorced already and this is NOT a Divorce settlement.

mf
 
The various ancilliary orders, (main order is divorce, ancilliary ones are miantenance, asset division, access etc) can be dealt with at a later date so there may have been an adjournment to allow for valuations etc to be carried out, with the slump in the market previous valuations may have been irrelevant.

So they can be "divorced" without everything being 100% finalised.

The answers to both scenarios are in previous posts.
 
divorce was granted / finalised aug 07. assets being sorted march 08. no maintenance involved. valuation on property was taken at time of W moving out. I assume they will take this valuation into consideration as opposed to current value market?
 
If you mean for tax (e.g. SD, CGT, CAT etc.) purposes then they need to take the current fair market value. If you mean for deciding what the leaving ex-spouse should pay then that's up to them.
 

Hi Stifster, yes appreciate all that. I suppose my lawyers mind is thinking - if it was August 07 then the Courts are not sitting so it sounds as if they may have agreed informally what they wanted to do but were not formally divorced. My own practice anyway is to have valuations current as at the Court date precisely so that nothing needs to be adjourned ( save perhaps Pension Adjustment Orders to be approved by Trustees).

mf
 

I actually was replying to your post but deleted your quote as it wasn't meant to be info for you but for anyone else reading ;-)
 
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