Contact Us

Under current legislation when chargeable assets are passed between spouses, they are treated as passing at ‘no loss/no gain’ which means there is no tax to pay. In the year of separation (i.e. the year in which a couple cease living together as husband and wife) the same rule is applied, so no capital gains tax is payable.

From 6th April following separation, however, the inter-spouse rules cease and any assets being gifted between the couple are treated as passing at open market value. This can lead to a capital gains tax liability for the donor. Therefore if you separated from your wife in the current tax year and if the property is transferred into her name before 5th April, no liability will arise. On the other hand, if you separated before 6th April 2011, or if the property is not transferred before 5th April this year, you may have a capital gains tax liability to settle.

If there is a gain chargeable to tax and it occurs between now and 5th April, any tax due will become payable on or before 31st January 2012. On the other hand, if the transfer takes place on or after 6th April this year, any tax due will not become payable until 31st January 2013.

When selling or transferring property, there are many things to take into consideration with regard to the capital gain computation, especially with regard to allowable costs and various reliefs that may be available. You should therefore seek professional advice in connection with this and any other assets being transferred as part of your divorce.
 

Date published 5 Dec 2012

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free consultation

0800 0523 555

Or contact us