.png)
.png)
The capital gains tax liability on a main residence sale after a divorce.
A husband and wife bought their main house in joint names in March 1968. The value of the property in March 1982 was estimated as £60 000.
The couple later divorced and the wife moved out of the property in March 1988. However due to the husband’s disability the court ruled that he could stay in the house rent-free for as long as he wanted. In the event he lived there until it was sold on 31 March 2016.
As part of the divorce settlement a charge was placed on the property awarding the wife 75% of its value.
The sale proceeds were £465 000 before costs of sale of £5 000. The husband and wife incurred costs relating to their divorce of £4 000 and £8 500 respectively.
I should be grateful for advice from Taxation readers on whether dependent relative relief will be available to the wife...
