Divorce and Separation
Divorce and separation bring significant personal tax implications, particularly where jointly owned assets, business interests, or complex financial arrangements are involved. Since April 2023, the CGT rules on divorce have changed significantly — and careful planning is essential to avoid unnecessary tax costs during what is already a difficult time.
What are the benefits?
CGT on Asset Transfers
Since April 2023, transfers of assets between separating spouses can be made at no gain/no loss for up to three years following separation (extended from the previous tax year rule). This provides more time to complete financial settlement without triggering an immediate CGT charge.
Business Interests
Where one spouse holds an interest in a business or company, the divorce settlement raises complex questions around valuation, share transfers, and the CGT treatment of any consideration paid. We advise on the optimal way to structure the division of business assets.
Property Division
Transfers of the family home on divorce can qualify for Private Residence Relief, but the interaction with the matrimonial home rules and the treatment of any mortgage proceeds requires careful consideration.
Pension Sharing
Pension sharing orders are not subject to CGT, but the tax treatment of pension assets transferred between spouses requires careful handling to ensure compliance and to maximise the after-tax position.
How can Zenus Tax help?
We advise on the CGT implications of all assets included in the financial settlement
We work with your family solicitor to ensure the settlement is structured in a tax-efficient way
We advise on the tax treatment of any ongoing financial arrangements post-settlement
We assist with any Self Assessment filings arising from the settlement
Frequently Asked Questions
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