Back in February 2022, I reported on tax issues affecting separating and divorcing couples; (you can see the full blog post on my website under latest top tips).

Good news for affected couples, new tax changes are coming in April 23 for the better.

RECAP At present:

• To benefit from the husband-and-wife asset transfer exemption, any asset swapping and dividing must be completed within the same tax year as the separation.
• Any asset transfer completed after April 5th of the tax year separation, can trigger capital gains tax including on the marital home.

• If you separate in late April, You have 11 months to complete property transfers.
• If you separate in March, you have less than one month to complete your property transfers

Delays can be caused for a variety of reasons including done deliberately to avoid Early Repayment Charges (ERC).

NEW RULES
If you transfer or swap any assets post April 5th 2023, you now have 36 months to complete any assets transfers including the marital home and still benefit from the husband and wife transfer exemption. These are very welcome new rules.

If you are separating / divorcing, or even just considering it if married life is difficult, please contact me to discuss your individual circumstances and requirements, so that I can advise on the most tax efficient route, if it is possible under what may be difficult circumstances. Everything will be treated in the stricted confidence.