Changes to capital gains tax (CGT) provide a boost for divorcing couples.
Every cloud has a silver lining! Changes to capital gains tax (CGT) provide a boost for divorcing couples.
Planned changes to CGT and how they will affect separating couples
Despite all the gloom and doom of rampant inflation and the cost-of-living crisis, one little ray of sunshine has emerged for divorcing couples or civil partners. Where a couple own more than one house, they had to pay CGT on transfers between each other as part of a divorce settlement, unless they were able to complete the transfer within one year of separating, which was a very tight, often unachievable timescale.
His Majesty’s Revenue and Customs (HMRC) has announced a change effective from 6 April 2023 which extends the time which a separating couple have to transfer properties between each other without having to pay CGT to three years. This will provide a huge boost to any couples who own more than one property and could represent a substantial saving.
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Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.