Recent changes in legislation provide more opportunities for property interests in the former matrimonial home to be sold or transferred without tax arising.
In certain circumstances, such as the sale to a third party, or where the transfers occurred prior to 6 April 2023 but an interest in future sale proceeds was retained (such as via a deferred charge or a Mesher Order), tax charges may still be liable on the eventual sale.
We can help determine whether Capital Gains Tax is due on the sale and if it is, assist with the necessary disclosure to HMRC within 60 days of completion.
Investment properties generally do not qualify for Private Residence Relief. While a transfer between spouses as part of formal divorce proceedings or within three years of formal separation, may pass between parties at ‘no gain and no loss’, parties still need to be aware of the inherent gains which they may be taking on as a result of the agreed transfers.
Unmarried co-habiting parties, unlike their married counterparts may not be able to use relief on investment property.