I am divorced. My ex is buying me out for £60,000. Will I pay tax on this? We bought the house for £280,000. 

Arthur Weller replies:  

If you look at HMRC’s Capital Gains manual at CG14530 (www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14530) you can see that HMRC invokes the 'market value rule' if "the transaction is otherwise than by way of a bargain made at arm’s length". Look at the subsequent HMRC guidance at CG14540 to CG14546. If the house was bought for £280,000, then to transfer half of it for £60,000 is not a bargain at arm’s length. So, market value will apply. Let's make an assumption that the current market value of the house is £320,000, so you will make a capital gain of £20,000 on your half of the house. However, most likely, part or all of the capital gain will be covered by principal private residence relief. Additionally, you have your CGT annual exemption of £12,300 to reduce the gain.