Excellent experience start to finish – always very responsive to any queries and the turnaround on the property I was buying was very quick, even in the busy time leading up to stamp duty deadline. Jenny was always very helpful and went above and beyond to close on a short timescale.
As most people will now be aware, divorce laws changed on 6th April 2022 and no-fault divorces on a simplified format were introduced. The general consensus is that these changes have improved practicality and fairness within the system.
From 6th April 2023, Capital Gains Tax (CGT) will be changing too with new rules providing couples with more time to consider how best to split their assets following a marital breakdown without a potential charge to CGT.
Spouses and civil partners will be able to transfer assets between themselves at “no gain, no loss” for three years after the year in which the couple ceased to live together as spouses or civil partners; or any period of time where the transfer occurs as part of a formal divorce agreement.
However, it does not mean that CGT can now be ignored and potentially separating couples will still need to obtain advice from a tax expert in relation to the tax implications of their divorce settlement before it is finalised.
From 6th April 2023, the following rules will provide the leaving spouse additional opportunities to elect how their PRR (Private Residence Relief) is appointed between their matrimonial home and any other home since leaving the former matrimonial home. These are:
1) Spouses and civil partners who retain an interest in their former matrimonial home will be given an option to claim PRR on that property when it is sold regardless of when they moved out provided they do not claim PRR on any other property for that same period.
2) Individuals who have transferred their interest in the former matrimonial home to their former spouse or civil partner and are entitled to receive a percentage of the proceeds when that home is eventually sold will be able to apply the same tax treatment to those proceeds when received that applied when they transferred their original interest in the home to their former spouse or civil partner. For example, if 100% PRR applied on a date of transfer then 100% of PRR can be applied to the gain arising on eventual sale.
However, family solicitors are not tax experts and if there are complicated tax issues that arise from a marital breakdown then it is always important for parties to take advice from a tax specialist.
For impartial expert advice on all family law matters, contact our Family team.