At present the general ability to transfer assets between spouses (or civil partners) without risk of capital gain arising (the ‘no gain no loss’ treatment) lasts only until the end of the tax year in which the parties permanently separate. In future that treatment will be extended by a further three years or until the date of divorce (etc.) if that is sooner.
The guidance published alongside the draft legislation indicates that the period is extended indefinitely in relation to any disposal made in pursuance of a court order; but the draft legislation itself provides for this indefinite extension to apply if the disposal is made pursuant to any agreement (i.e. not limited to court orders) made in connection with the breakdown of the marriage or civil partnership. Hopefully the position will be clarified before the draft legislation becomes law.
The other changes are in relation to disposal of the...
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