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Capital Gains Tax is changing for divorcing couples

Capital Gains Tax is changing for divorcing couples

Tim Woodgates


From April 2023, divorcing couples will no longer need to settle their estates within a year and face Capital Gains Tax (CGT) bills. 

New measures will give separating spouses and civil partners up to three years after the year they cease to live together, to make no gain or no loss transfers of assets. Unlimited time will be given when the assets are the subject of a formal divorce agreement.  

Individuals who have transferred their interest in the former matrimonial home and are entitled to receive a portion of the proceeds when the property is eventually sold, will be able to apply the same tax treatment to those proceeds as when they transferred their original interest in the home. 

Individuals who have maintained a financial interest in their former family home following separation will be given an option to claim private residence relief (PRR) when the property is eventually sold. 

These changes will apply to disposals that occur on or after 6 April 2023. 

Alternatively, if you have any questions, please contact your usual Moore advisor.