Taxation on break up

M

marsbars

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Hi all, I am in a bit of a predicament and any help would be greatly appreciated. I am currently going through a break up with my girlfriend. It is amicable and I will not have to pay my partner any of the equity in the house. My partner will be taking ownership of half our site (1/2 acre) to build her own house. However I have been informed that I will have to pay a range of taxes including stamp(on the house I already own!), gift, CGT and maybe CAT. My solicitor, broker and an accountant I have spoke to all have different versions - can anybody clear this up??? Value of house - 340000, Value of mortgage - 210000, Value of 1/2 acre 70000( cost - 20000).
 
Can you be a bit clearer?


Do you both a house together jointly? Or is it your house? And is she giving you her share of the house for free? ( Gift tax) ( Stamp duty) Did you both contribute equally to purchase etc.,etc. You have a site worth 70K that you also own jointly but there is no mortgage but are you giving her your share for free? ( Gift tax, Stamp duty and CGT).

mf
 
Yes we hold house jointly and are giving both our shares (of land and house) to each other for free. However I have been told tax is still due!!
 
"Yes we hold house jointly and are giving both our shares (of land and house) to each other for free. However I have been told tax is still due!!"

Its not that its for free - its to do with what is market value.

House : 340,000.00
less mortgage: 210,000.00
Equity in house ( how much you'd pocket if selling) 130,000.00

Divde in two: your gf is giving you a gift of 65000.00. You are stangers in blood, you pay gift tax. There won't be any stamp duty. Should'nt be any CGT - if its principal private residence

Site: 70,000.00. Half of that is 35000.00. You are giving your gf a gift of 35,000.00. You are stangers in blood, she pays gift tax. There will be stamp duty of 3% on the interest passing : 35,000.00. There has been a Capital Gain , you are disposing and you are liable for CGT.

mf
 
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