More flexibility for separating couples on the way
In 2021, the Office of Tax Simplification (OTS) recommended that the current window for separating couples to transfer assets without triggering a taxable gain should be extended. Why is the draft legislation better news for couples than first anticipated?
Currently, where spouses (or civil partners) separate in a way that is likely to be permanent, there is a limited period of time for them to reach an agreement regarding transferring assets to one another without triggering a taxable capital gain. The window slams shut at midnight on 5 April of the year of permanent separation. This has long been criticised, as those separating late in the tax year may have mere days to effect transfers efficiently. It initially appeared that the government would extend the window to the end of the tax year following the year of permanent separation. However, draft legislation published in July 2022 makes clear that from April 2023 spouses and civil partners will have three full tax years following the year of separation to transfer assets with no capital gains tax consequences.
Related Topics
-
HMRC speeds up National Insurance refunds
HMRC has confirmed that it is using a new automated process to speed up National Insurance refunds. Where its records suggest that someone may have overpaid, HMRC will write to them asking them to check their employment and contribution details before any refund is processed. Could you be due money back?
-
Should you voluntarily payroll benefits in kind?
The window to sign up to voluntarily payroll non-mandatory benefits in kind for 2027/28 will open in November. Is it worth volunteering to pay HMRC earlier than required or should you wait until it becomes mandatory in 2028/29?
-
Wise tax statement errors could affect 4,000 customers
Around 4,000 UK customers of financial services provider Wise have been told that tax statements issued between 2021 and 2025 contained incorrect figures. The errors could have resulted in taxpayers paying too much or too little income tax and capital gains tax (CGT). What should affected customers check?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.