In the article entitled ‘Divorced? There is a lot more to it when it comes to your finances’, Rebecca explains the implications of Capital Gains Tax liability following a divorce or separation, and in particular the possibility of having to pay tax following the transfer of the marital home.
Rebecca highlights new rules that the Government is bringing in to make the process fairer for splitting couples who transfer assets. The changes are due to come into effect from April 2023.
The Capital Gains Tax rule changes mean that separating spouses will be given up to three years after the year they cease to live together within which to make transfers without any liability. There is also a proposal that any spouse who remains in the marital home will be given an option to claim Private Residence Relief when it is sold. However, the new rules do not remove the tax issue completely, therefore it will remain an important factor for splitting couples to consider and something that they should seek expert advice on.
In the article, Rebecca states of the changes:
“We welcome the proposed changes. Splitting couples have enough on their plate without also having to worry about the clock counting down to what can be a considerable tax liability. Given that the new rules are still some way off, if you have recently separated from your partner, it is strongly recommended that you seek expert legal advice as soon as possible so that you have plenty of time to reach a settlement and transfer any assets before the end of the tax year.”
The Sweeney Miller Law Family team has excellent connections with financial, tax and pension advisors who can advise on the valuation and division of assets, including pensions, following a split.
In addition, we have a large Conveyancing team that can help with the sale or transfer of the family home, as well as an experienced a Commercial team to assist in dealing with any company interests on divorce. We also have an Estate Planning team that can help you create a Will to reflect your new wishes. We help clients from start to finish with their divorce and financial settlement and offer a free initial no obligation 30-minute consultation.
Rebecca’s full article can be found here.
To find out more or to book an appointment, email Rebecca firstname.lastname@example.org, or call 0345 900 5401.