{"id":4747,"date":"2022-08-08T11:29:01","date_gmt":"2022-08-08T11:29:01","guid":{"rendered":"https:\/\/www.georgehay.co.uk\/blogs\/?p=4747"},"modified":"2023-11-15T20:37:18","modified_gmt":"2023-11-15T20:37:18","slug":"capital-gains-separation-transfer-of-assets","status":"publish","type":"post","link":"https:\/\/www.georgehay.co.uk\/blogs\/2022\/08\/capital-gains-separation-transfer-of-assets\/","title":{"rendered":"Capital Gains: Separation and transfer of assets"},"content":{"rendered":"

For separating or divorcing spouses, HM Revenue & Customs (HMRC) has announced important changes to Capital Gains Tax rules relating to transfer of assets.<\/p>\n

Currently, assets transferred between cohabiting spouses and civil partners are subject to \u201cno gain or no loss\u201d treatment. The treatment applies in any tax year in which they are living together. This treatment postpones gains or losses until the spouse or civil partner in receipt of the asset disposes of it.<\/p>\n

The cost of acquisition is deemed to be the same as when the transferrer originally purchased the asset.<\/p>\n

Where a marriage or civil partnership has broken down, the benefit of no gain no, no loss treatment only lasts until the end of the tax year in which the two parties permanently part ways.<\/p>\n

In a review of CGT, the Office of Tax Simplification (OTS) recommended fairer treatment of divorcing or separating couples disposing of transferred assets.<\/p>\n

Extension of ‘no gain, no loss’ treatment<\/h5>\n

No gain, no loss treatment will be extended for disposals occurring on or after 6 April 2023. The extension will allow for the transfer of assets for up to three years after the couple stop living together.<\/p>\n

In particular, those experiencing protracted and complex divorce proceedings, involving the distribution of assets, stand to benefit.<\/p>\n

The Finance Bill 2022-23 also includes the following proposed revisions:<\/p>\n