Welcome news for those going through separation

17 April 2023

Back in July 2022, we shared a blog outlining the proposed changes to the transferring of assets between spouses or civil partners. This is when the government announced that for assets transferred from 6th April 2023 onwards, couples would have 3 years from the date of separation to make the transfer, and the transfer wouldn’t be liable to Capital Gains Tax (CGT). 

Now we’ve reached 6th April 2023, it’s official: married couples and civil partners are able to transfer assets without paying any CGT on any increase in the transferring assets value.

pre-6th april 2023…

Up until 6th April 2023, separating couples could transfer assets in the year of separation without any CGT implications however thereafter, the couple would be taxable on any increase in value.

post-6th april 2023…

From 6th April 2023 the rules have changed:

  • Separating couples now have 3 years to transfer assets at no gain, no loss (this means any gains or losses from the transfer are deferred until the asset’s disposed of by the receiving spouse or civil partner).
  • Any transfers which are part of a formal divorce agreement can be transferred at any time.
  • Relief on the marital home can also be claimed if one of the couple retained an interest in the property, even if they’d moved out (assuming no other property’s been nominated as their Principal Private Residence).

There’s a ‘but’…

Not all issues are removed.

For example, overseas tax rules still need to be considered when transferring assets.

as always, we’re by your side

The changes remove some of the tax issues that a separating couple would rarely consider but it’s still important to consider the tax and financial issues of a separation. As always, we’re here to provide early advice through what can be an incredibly difficult time.

Drop me an email or give our team a call any time on 01604 273782.

 

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