From the 6th April 2023 new rules are in place which will affect separating couples.
Amelia Smith is a Trainee Solicitor in the Family Team here at Wollens and has put together this helpful guide:
What are the proposed changes to the law re Capital Gains Tax?
- Separating spouses or civil partners will be given up to 3 tax years after the tax year that they stop living together in which to make a ‘no gain, no loss’ disposal for CGT purposes.
What situation may this period end earlier?
- If the court pronounces the final order/decree absolute within the divorce.
Does it apply to property being transferred between separated couples?
- No gain/no less treatment will also apply to assets that separating spouses or civil partners transfer between themselves as part of a formal divorce.
Are there any reliefs permitted in relation to the former matrimonial home?
- A spouse or civil partner who retains an interest in the former matrimonial home be given an option to claim private residence relief (PRR) when it is sold.
- If you have transferred your interest in the home to your former spouse but remain entitled to receive a percentage of the proceeds when that home is sold, you will be able to apply the same tax treatment to those proceeds that applied when you transferred your interest to your former spouse.
When are the proposed changes to come into effect?
- 06 April 2023.
Read the government policy paper using the link below.
At Wollens our family team are experts in this field and can advise you at an early stage.
Contact Amelia today :
Call us :
South Devon 01803 213521
Exeter 01392 274006
North Devon 01271 342268