Capital Gains Tax has always been complicated when it comes to separation and divorce, however, from the 6th of April 2023, some positive changes are happening ...
This means that chargeable assets such as business interests property, or shares can be transferred between them without any Capital Gains Tax!
These new measures are intended to make rules around Capital Gains Tax fairer when people separate or divorce. It gives them extra time to distribute any assets before charges apply.
Do note, that only those separating or divorcing from a marriage or civil partnership can benefit from this new legislation. Anyone simply living together, will not be able to use the 'no gain, no loss' rules.
To summarise, separated couples now have up to three years to distribute their assets and make a 'no gain, no loss' declaration, with unlimited time for those with a formal divorce agreement.
Private Residence Relief can be claimed when the matrimonial home is sold and the other spouse, who transferred ownership, can receive a percentage of the proceeds using the same 'no gain, no loss' rule.
I feel this is a very positive move and clears up a lot of confusion.
If you'd like to find out more about anything I've written here, do call me on 01908 774323 or leave a comment below and let's see how I can help you.