Lee Sharpe looks at some recent changes affecting capital gains tax.
There have been several changes to the capital gains tax (CGT) regime over the last few months. This article considers:
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separation and divorce;
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annual exemption ambush – the ‘parting shot’ of the Office of Tax Simplification (OTS); and
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inflation and arithmetic.
Separation and divorce
Readers will probably be aware that disposals between couples who are married or in a civil partnership will be on a no gain/no loss basis, regardless of any consideration actually paid, such that the donee typically acquires the original owner’s base cost for CGT purposes and future disposals. But the spouses (or civil partners, etc.) must be living together as a couple (TCGA 1992, s 58).
