New tax changes that may impact on divorcing couples

New tax year changes

The start of the new tax year has understandably almost arrived unnoticed due to the pandemic however there are some pretty big changes which came into effect from 6 April 2020 which may particularly impact divorcing couples.

Capital gains tax

Capital gains tax is now payable within 30 days of selling or transferring a property.

If as part of your divorce you are jointly selling a property or you are transferring your share of a property to your partner the capital gains tax will be due within 30 days of the disposal. 

If you are transferring the property within the tax year of separation then there will be no capital gains tax payable on transfer.

If you are transferring the property outside of the tax year of separation capital gains tax will be payable on the market value of the property. See my previous blog here for more information.

Who does this potentially impact?

This will impact you if you are selling or transferring a property.

Action needed:  

Not only will capital gains tax be payable within 30 days but you will need to complete a land transaction report...

Read the full article here.