Our articles are written by experts in their field and include barristers, solicitors, judges, mediators, academics and professionals from a range of related disciplines. Family Law provides a platform for debate for all the important topics, from divorce and care proceedings to transparency and access to justice. If you would like to contribute please email editor@familylaw.co.uk.
A day in the life Of...
Read on

Divorce and Capital Gains Tax: the basics

Date:30 AUG 2019

Tax can often be quite low down the list of priorities as something to think about during a relationship breakdown.  However in all but the most straightforward of cases taking tax advice at an early stage is highly recommended.  Unless the parties are properly advised unexpected tax bills can arise.  Due to the time lag with self-assessment realising there might be a tax liability can often be some time after the parties think that everything has been finalised and they can move on with their lives (for example a Capital Gains Tax (CGT) liability realised in September 2019 will not be payable until 31 January 2021).  

No Gain/No Loss principle

Inevitably assets will be transferred between the parties as part of the dissolution of the marriage or civil partnership. Many individuals labour to a compromised position under the impression that they can give assets to each other with no CGT cost.  This is indeed the case for spouses and civil partners who are living together as the “no gain/no loss” principle applies up to the end of the tax year of separation (see below). 

Thereafter the...

Read the full article here.