Proposed changes to the CGT rules on transfers of property between separating spouses and a tribunal decision on information notices are among the developments reviewed by Edward Reed and Clare Wilson (Macfarlanes).
Relaxation of CGT rules on separation and divorce
It is well known that spouses or civil partners are able to transfer assets freely between each other without triggering an immediate CGT charge on the disposal of the asset (known as a ‘no gain no loss’ transfer). However couples who are separating or divorcing can be caught out by existing rules which extend this treatment only for the remainder of the tax year in which they separate. Transfers made from the following tax year are deemed to take place at market value and taxed accordingly.
In a May 2021 report on CGT the Office of Tax Simplification (OTS) noted that ‘it is unrealistic to expect separating couples...
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Proposed changes to the CGT rules on transfers of property between separating spouses and a tribunal decision on information notices are among the developments reviewed by Edward Reed and Clare Wilson (Macfarlanes).
Relaxation of CGT rules on separation and divorce
It is well known that spouses or civil partners are able to transfer assets freely between each other without triggering an immediate CGT charge on the disposal of the asset (known as a ‘no gain no loss’ transfer). However couples who are separating or divorcing can be caught out by existing rules which extend this treatment only for the remainder of the tax year in which they separate. Transfers made from the following tax year are deemed to take place at market value and taxed accordingly.
In a May 2021 report on CGT the Office of Tax Simplification (OTS) noted that ‘it is unrealistic to expect separating couples...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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