Latest articles
UK Immigration Rough Sleeper Rule
Aaron Gates-Lincoln, Immigration NewsThe UK government has recently introduced a controversial new set of rules that aim to make rough sleeping grounds for refusal or cancellation of a migrant’s...
Teaching Hospitals NHS Trust v DV (A Child) [2021] EWHC 1037 (Fam)
(Family Division, Cohen J, 19 April 2021)Medical Treatment – 17-year-old had form of bone cancer and required surgery For comprehensive, judicially approved coverage of every important...
Domestic Abuse Bill
Aaron Gates-Lincoln, Immigration NewsAfter years of development the Domestic Abuse Bill returned to the House of Lords in the UK on the 8th March 2021 to complete its report stage, one of the final...
Coercive control and children’s welfare in Re H-N and Others
When families come to strife, arrangements must be made for the future care of any children. In some circumstances, this means an application to the courts. These ‘private law orders’ can...
Profession: Expert Witness
The value of a family business or business interest is treated as an asset and therefore part of the matrimonial pot to be distributed when it comes to negotiating a financial settlement on divorce or...
View all articles
Authors

The tax trap hidden in the Budget that will hit divorcing couples who sell the family home

Dec 18, 2018, 07:24 AM
Slug :
Meta Title :
Meta Keywords :
Canonical URL :
Trending Article : Yes
Prioritise In Trending Articles : No
Date : Dec 18, 2018, 07:44 AM
Article ID :
  • Changes to capital gains tax rules will affect divorcing couples from 2020
  • Couples will have nine months instead of 18 to sell before becoming liable 
  • Divorcing couples have other options available than just selling their home 

In the best and worst of Budget traditions there is often one change tucked away in the small print which might go unnoticed until it's too late. 

This year proved no exception with a change to the rules on capital gains tax on property. 

The Chancellor Philip Hammond revealed he would half the relief awarded to accidental landlords selling up a property that had previously been their permanent private residence - or their home, in other words. 

This will hit those who struggle to sell and those who need to move for work or family reasons and decide to let their own home rather than sell up and buy elsewhere.

But how badly will it sting? We explain below.

At the moment, individuals who move out of their home but don't sell it immediately have a window of 18 months during which time, the entire proceeds from a sale are exempt from capital gains tax. 

From April 2020, this window will half, leaving those who struggle to sell their previous home after they move out just nine months to exit before having to stump up capital gains tax to the Treasury.  

While it has been pitched as a further crackdown on landlords, the new rule is also likely to affect divorcing couples. 

Emily Kozien-Colyer, a solicitor at Goodman Derrick, explains what the options are for divorcing couples who may find themselves hit by the changes. 

As of April 2020, individuals will have only a nine-month window within which to sell their main residence, after they have moved out, before they potentially become liable for capital gains tax. 

This article appeared in the This is Money section of the Evening Standard. You can read the full article HERE

Categories :
  • Articles
  • News
Tags :
  • Divorce
Home
Authors
Provider :
Product Bucket : Family Law (General)
Related Articles
Load more comments
Comment by from