Here are five things you need to know about divorce and taxes in the new tax year
4th April, 2019
If you are separating or considering separating then you may not realise the importance of the new tax year.
In broad terms, there is an exemption that you can give or sell assets to your spouse or civil partner without paying capital gains tax on the transfer as long as you do so in the year that you separate from your partner.
CGT is normally payable on personal items worth over £6k;
CGT is not payable on asset transfers to a spouse that take place within the same tax year of separation;
This exemption is often a financial advantage to separating couples to reach a financial settlement sooner rather than later, and subsequently saving on solicitors fees;
The new tax year resets each parties personal allowance which again can be used to their advantage when trying to divide the matrimonial assets;
Obviously, this all needs to be taken into account in the same tax year so the above considerations have time limits which depend on how far into the financial year they decide to separate.
If you are considering separating or divorcing and are unsure about the process and how tax and other financial matters will affect this, get in touch with our experienced divorce solicitors today.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
This page may contain links that direct you to third party websites. We have no control over and are not responsible for the content, use by you or availability of those third party websites, for any products or services you buy through those sites or for the treatment of any personal information you provide to the third party.