This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

A state of confusion: Holdover claims and couples splitting up

By Reshma Johar, June 2021

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

This is one of our 2037 Premium articles

To see this article in full and unlock access to our complete library of 2037 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!