CGT Question

PaulBB

HI All

Just a quick question about CGT please. I got divorced in 2017 and at that time a house was signed over to me as part of the divorce. 3 years ago I purchased another house which needed work done on it and it is now as a point I could live in it. What I wanted to know is because I have 2 properties is my original home from from CGT should I choose to sell it and move into the new house. If it is liable to CGT what would be the calculation, sale value less value at time of divorce or less value when originally purchased.

If I move into the new home and rent it would it become liable to CGT being a rented property? And of so what calculation would apply please

Thanks

Catherine

Geuze

House A is your PPR.

No CGT on any gains made on disposal of PPR.

If you sell house A now, there is no CGT, as it has been your PPR.

You bought house B three years ago, you worked on it, improved it. You move into it in 2022, after selling house A, so house B becomes your PPR.

I don't get the second paragraph?

PaulBB

Hi Geuze

Thank you. I was saying that if I move into House B and then rent house A for a while e.g. 2-3 years presumably CGT would then become payable on it as House B would become my PPR. In that case would it be disposal proceeds less value at point of divorce OR disposal proceeds less value when we originally purchased it.

Thanks again

:)

Geuze

Ok.

If you move out of house A, and rent it, then CGT may be payable on any future disposal of house A.

You are asking how to establish the base cost of house A.

You seem to have acquired 50% at original purchase, and then the other 50% at point of divorce.

That's a tricky question.

I suggest asking on AAM, or waiting for further replies here.