Capital Gains Tax

Ginger0749

Hi
wonder if anyone can help with this query - i havent touched on CG for a long time!
A shop is in joint names, husband and wife. the wife is relinquishing her half to her ex husband as part of their divorce settlement. She originally put up the deposit for buying the shop and became a silent partner. It has been agreed that in order to take her name off the business, she will give up her half but no money will be paid for it, the wife will not be making any money. I know if it was a SALE to the husband there would be a GAIN but in this case as no money is passing hands, i take it there is no CG?

Thanks very much

MarieNoelle

"no money passing hands" doesn't necessarily mean no CG. The "deemed" proceeds is the market value of the half of the shop; whether it is taxed in the hands of the wife will be determined by the situation of the couple and the date they separated. For more help see this helpsheet.

I hope this helps. :-)

Ginger0749

Thanks very much for the worksheet, appreciate your comments.