CGT after divorce transfer.

[Davidball]

Hi guys . . .me again . . . .

As part of the divorce settlement, my ex is going to transfer her french house to me, for which

she will be paying UK CGT.

If I sell it straight away, will I be liable for any CGT ?

Is this enough info for an answer?

David

[derf]

No.

Are you resident in France?. If so is this your main residence? have you made a French Tax declaration?

[Davidball]

No, I'm in the UK, but this will be my only property,

I pay tax in the UK, I'm anticipating 16% on any increase

between the transfer and resale prices.

D

[Will]

Yes, you will be liable for capital gains tax in France, and your estimate of 16% on the profit is right (unless the house has been owned for more than 5 years, in which case the amount goes down each year and you can also then apply an allowance for repairs etc).

You may also have to pay some tax in UK on the gain.

[Davidball]

I think as it's part of a taxed UK Divorce and the ex is paying UK CGT on the offset against the

marital home, and i don't own another home, (or won't when I sell) there shouldn't

be UK CGT on my resale of it!

[Will]

That's good then, British capital gains can be even more complicated than French. It all depends on amounts, and your annual allowances. In a case like a divorce you can find yourself disposing of various jointly-held assets which, even though you are very poor at that time (I've been there too) take you into paying capital gains taxes.