Capital Gains Tax and Divorce

Tax is probably not the first thing that springs to mind when you are considering the prospect of divorce. Dissolvig your marriage can have some serious impact on tax. In essence, it is not the divorce that has tax imlications, but the separation which is where we shall begin.
Co-habiting couples whom are married are able to benefit from the ability to transfer particular assets from one to another free from capital gains tax under the modern tax break rules. However, if a couple choose to separate, and so no onger live together in the same property, these rules will cease to be applicable from the date of the next new tax year.
Although the last thing on your mind will be to transfer assets to your soon to be ex, many divorce lawyers utilise this legislation by stretching the principle to ensure their client receives the best return.
Whilst separation and divorce are an emotional and sometimes exhausting journey, the tax world is a cold, stark place in comparison. Even though this may seem peculiar, from a tax only perspective is it often advised by accountants to for ypou to exit the marital home as early into the tax year as is reasonably plausible. This way, there is lots of time to work through tax efficient manoeuvres. To leave the marital home bang on the 1st April would be silly as the new tax year has not yet begun. Wait until the new tax year is reached and move out on or after the 6th April so that the new tax year has begun.
This is a way of utilising the tax rules so that you are able to transfer assets to the relevant party without suffering excessive tax implications.