Reshma Johar highlights an HMRC interpretation of the tax law that is causing some difficulties for couples on divorce (or on the dissolution of a civil partnership).
Many trading activities are owned by couples. What would be the impact if the couple were to permanently split up? What are the capital gains tax (CGT) impacts on being required to transfer business assets? Can gift relief (under TCGA 1992, s 165) eliminate potential CGT?
It’s definitely over!
It is vital for tax purposes to know when spouses or civil partners decide to permanently separate. For the period whilst the couple are married or in a civil partnership and living together to the end of the tax year in which they separate, they will be able to transfer assets between them without