CGT rules for divorcing couples to change next year

The Government has announced that Capital Gains Tax (CGT) rules for divorcing couples will change on 6th April 2023. Currently, if a couple transfers assets between them any time after the tax year in which they separated, there may be a tax to pay. The new rules will give couples three tax years from the split to share assets without triggering a tax bill. Couples will also be given unlimited time to settle if those assets are part of a formal divorce agreement. Additionally, those who moved out of a marital home but kept a share in it will be able to claim Private Residence Relief (PRR) if the property is sold. Those who transferred their interest in the property to their ex will be able to apply the same tax treatment to the sale proceeds as applied when they transferred it.