Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

New queries, issue 4591

14 March 2017
Issue: 4591 / Categories: Forum & Feedback

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...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon