Separation

[milamber]

Ok
Suppose a couple split up. One of them buys the other out of the family home. There are two properties.
What taxes to each of them have to pay (inheritance, gift, what)
Anyone have experience of this.
What comes out of the final settlement amount exactly?

So for example - sell a house 350k to b.
A receives 240k.
What does he / she have to pay?
If he / she buys again - what must he pay then?

 

[Gordon Gekko]

I don't understand the question.

Transactions between a married couple are tax neutral, except for CGT where the couple have to be "living together".

Transactions arising as a result of a deed of separation are also tax neutral.

What's happening in your example? If it's an arms length purchase, then there are no issues.

 

[milamber]

Ok - if there are two properties - each owned by one of the couple. is there any tax implications on transfer. if both are sold to one party. is there any tax implications. one is rented. other is family home.
what other taxes are payable on separation.

 

[mf1]

Your queries are very hard to decipher.

I think this is what you're saying. I'm married and separating. I own two properties in my sole name. I hope to sell them both to a third party. Or I intend to transfer the family home to my wife and she will pay me a lump sum. I will then sell or keep the investment property.

If you sell everything to a third party, you will have estate agents and legal fees on the sales. You may have capital gains tax on the sale of the investment property. You can give your spouse any amount of money tax free.

If you transfer the family home to your spouse, there are no tax issues. If there is a mortgage, the bank may not permit the transfer. You will have legal fees.

If either of you buy another property, you will have stamp duty to pay and legal fees.

You really, really, really need to be talking to your own solicitor.


mf