Will I be liable to pay tax on the equity from my house?

Q I was married for 13 years and during that time I paid the mortgage on our house which was in both of our names. To cut a long story short, following the divorce from my wife it was agreed that on the sale of the house I would be given 10% of the equity. When the house is sold, will I be liable to pay tax on the equity that I will receive?

CG

A It is a bit of a grey area, but l think it unlikely that you will be liable to pay tax. You don't say how long ago you divorced and stopped living in the house. While you were there it was presumably your principal private residence, which would make it exempt from capital gains tax. Any tax liability would take into account how long you lived there. Furthermore, remember you have a personal exemption from capital gains tax, which amounts to ?7,700 in the current tax year.