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Property pain; Family matters; Transactions in land; Import duty
Property pain
Capital gains tax liability on share of home passed back in divorce settlement.
Eighteen years ago while I was married my mother-in-law signed over the deeds of her bungalow to my wife and me in joint names. There was a caution that she was allowed to live in it for the rest of her life. We obviously did not charge rent and she paid all bills and upkeep.
Last year we divorced and part of the financial settlement was that I signed my share of this property back to my ex-wife and she would take on any capital gains tax liability that came from my share.
Although I accept the financial settlement is legal and binding I feel uneasy because I understand that under normal circumstances any capital gains tax liability on property is due within the year that the deeds change...
