Change of title and CGT

[Owen]

I have a friend who is going through a divorce at the moment and his soon-to-be ex-wife wants to sell their IP and spend the cash.

We used to work together and he must have absorbed all my ranting about how good property is so he would like to hold onto the asset. He is trying to come up with an appropriate payout figure to offer her in lieu of selling the property.

He has worked out how much they would each get in the hand after all selling costs and CGT etc. but was wondering if CGT would payable by her if the title was changed to his name only? This has an impact on how much he would be able to offer her and he is trying to show that she would get more cash is she sold to him. Any ideas?

 

[peelsman]

yes she would be up for CGT but if he's (before they are divorced) quick she might like to transfer to him with no stamp payable.
All that is needed is a valuation and the method used to obtain that valuation and you can get the equity out if it is transferred between spouses. I assume that it is in her name only.
Alterantively, they might like to do a "cash adjustment" and a reduced contract sale prce. This would reduce the CGT and is also illegal.

Depends on taxable income for the year etc,

HT

 

[DaleGG]

HI

If they are both smart they can transfer the assets without CGT or stamp duty by applying for a court order as part of their property settlement.

Dale

 

[Owen]

Originally posted by DaleGG
HI

If they are both smart they can transfer the assets without CGT or stamp duty by applying for a court order as part of their property settlement.

Dale

So as part of the settlement she would get cash and he would get property?