capital gains tax

[dollydoo]

my friend recently got divorced & is now selling the family home the proceeds of which are to be divided with the ex. someone has told her that she has to buy a new home with her share or she will be liable for capital gains tax. she doesn't want to buy a new house as she lives in a rented place and just wants to bank her share to help pay for her living expenses etc. anyone shed a light?

[Postdog]

I asked a similar question here some weeks ago. In my case, there's no divorce but for financial reasons I am likely to have to sell my house and move in with a girlfriend who rents a place. Anyway the answer I got - and I would think this applies to your friend too - was that capital gains tax would only have to be paid if the house she was selling was NOT the main residence. In other words, if that was her home, then whatver she makes on the sale is hers, if it was a second home and not her main residence, then she would be liable for CGT.

[buildersmate]

This is true.

[cazz218]

you are not liable for CGT on sale of your main residence.