CGT Rule Change for Couples on Divorce or Separation
The government has announced new rules for capital gains tax (CGT) that will come into effect from April 2023. The CGT rule change will make it easier for divorcing couples to transfer assets between themselves without incurring any CGT liability.
Under the current rules, divorcing couples only have one tax year in which to transfer assets on a no gain no loss basis. This can be a difficult deadline to meet, especially if the couple are still in the process of negotiating their divorce settlement.
The new CGT rules will extend the no gain no loss period to three tax years. This will give divorcing couples more time to arrange their financial affairs and to make sure that they transfer assets in a tax efficient way.
In addition, the new CGT rules will allow divorcing couples to transfer assets as part of a formal divorce agreement without incurring any CGT liability. This will make it easier for couples to reach a financial settlement that is fair to both parties.
The new CGT rules are a welcome change for divorcing couples. They will make it easier for couples to transfer assets between themselves without incurring any CGT liability, and they will give couples more time to arrange their financial affairs.
What are the benefits of the new CGT rules?
The new CGT rules will provide a number of benefits for divorcing couples, including:
- More time to transfer assets on a no gain no loss basis – up to three years, after the year they cease to live together, to make no gain or no loss transfers of assets
- unlimited time when the assets are the subject of a formal divorce agreement
- More flexibility in how assets are transferred
- Less risk of incurring CGT liability
How can I take advantage of the new CGT rules?
If you are divorcing, it is important to speak to a financial advisor to discuss how the new CGT rules may affect you. They will be able to help you to understand the rules and to make sure that you take advantage of the benefits that they offer. Paradigm Family Law have experienced lawyers who will assist and advise you and enable you to make the most of the new rules.
Paradigm Family Law have a team of experienced lawyers to help guide you through the process of divorce, just waiting to hear from you.
If you would like more details on this or want to discuss your family law matter, please do not hesitate to contact James, Frank, or Evelyn. Paradigm Family Law offers a free initial consultation and our fixed fee solutions cover financial proceedings from start to finish. You can call us on 01904 217225 or email us to [email protected].