Jon Golding looks at the new rules relating to capital gains tax arising from a couple’s divorce.
With capital gains tax (CGT) under scrutiny before and after the Autumn Budget 2024, the question is: what now happens with assets owned by a divorcing couple and becoming part of a financial order?
At the time of separation and divorce negotiations, the law changed to ‘no-fault divorce’ impact from 2022. This change had the added effect of amending the CGT on a transfer of property between couples that extended indefinitely the 'no gain, no loss' transfer option (see below). This applies to transfers from 6 April 2023, which offers tax planning opportunities for couples.
The new legislation
‘No-fault divorce’ was introduced as part of the changes to the Divorce, Dissolution and Separation Act 2022, and the related tax
