When spouses or civil partners separate, for capital gains tax purposes the no gain/no loss treatment is only available in relation to any disposals up to the following 5 April. After that, transfers are treated as normal disposals for capital gains tax purposes which means that CGT may arise on any gains on transfers between them that are treated as made at market value.
As previously announced, the Spring Finance Bill 2023 that will provide that:
These changes represent a very welcome relaxation of the CGT rules for separating couples. As the government has said in their announcement about this measure: 'more time can be spent on the divorce considerations, rather than Capital Gains Tax considerations. The extension will also help avoid further depletion of household income or existing accumulated household wealth through dry tax charges for those who meet the new time period.'
When spouses or civil partners separate, for capital gains tax purposes the no gain/no loss treatment is only available in relation to any disposals up to the following 5 April. After that, transfers are treated as normal disposals for capital gains tax purposes which means that CGT may arise on any gains on transfers between them that are treated as made at market value.
As previously announced, the Spring Finance Bill 2023 that will provide that:
These changes represent a very welcome relaxation of the CGT rules for separating couples. As the government has said in their announcement about this measure: 'more time can be spent on the divorce considerations, rather than Capital Gains Tax considerations. The extension will also help avoid further depletion of household income or existing accumulated household wealth through dry tax charges for those who meet the new time period.'