Changes to Tax Rules for Divorcing & Separating Couples
The Government has announced changes to the capital Gains Tax system which will bring changes to tax rules for divorcing and separating couples from April 2023.
Capital Gains Tax is payable on any profit made when you sell or dispose of an asset, which has increased in value since you bought it. An asset could be property, a business or shares that are sold for more than £6,000.
The current rules for working out your gain or loss are complex. Therefore, spouses and civil partners need to be cautious of unexpected tax bills which can influence the outcome of the financial settlement.
What are the main changes?
Under the new legislation, assets transferred between ex-spouses on or after 6 April 2023 will be subject to a more accommodating tax regime. The main changes include:
- There is no time limit when assets can be transferred as part of a formal divorce agreement.
- A spouse or civil partner who continues to live in the former matrimonial home is given the option to claim Private Residence Relief (PRR) when the property is eventually sold.
- Up to 3 years after the year separating couples stop living together, they can make no gain or no loss transfers.
Divorce Solicitors Leeds
Morrish Solicitors is a long-established law firm in West Yorkshire providing a range of legal services both regionally and nationally. Our experienced team of solicitors can support you through your divorce and family law matters.
We aim to achieve a constructive and amicable solution that supports both you and your family, whilst keeping costs and stress to a minimum.
Contact our divorce and family law team on 033 3344 9600 or email [email protected] with your request.
