New measures have been introduced for the even-handed treatment of spouses and civil partners who are in the process of separation, divorce or dissolution. The new legislation clarifies Capital Gains Tax (CGT) rules that apply to transfers of assets between spouses and civil partners, giving them up to three years in which to make no-gain
New measures have been introduced for the even-handed treatment of spouses and civil partners who are in the process of separation, divorce or dissolution.
The new legislation clarifies Capital Gains Tax (CGT) rules that apply to transfers of assets between spouses and civil partners, giving them up to three years in which to make no-gain or no-loss transfers of assets between themselves when they cease to live together, and unlimited time if the assets are the subject of a formal divorce agreement.
The new measure gives those who are separating more time to transfer assets between themselves without incurring a CGT charge.
The legislation also ensures that a partner who retains an interest in the former matrimonial home be given an option to claim Private Residence Relief (PRR) when it is sold.
These changes apply to disposals that occur on or after 6 April 2023.
