The Office of Tax Simplification (OTS) is calling for an overhaul of capital gains tax (CGT) rules from tax liability when moving home to getting divorced, and an extension of the tight 30-day deadline for settling CGT bills when selling property.
One of the areas which will need reform relates to divorce and separation as married couples or civil partners can transfer assets between them without triggering an immediate capital gains tax charge. Divorcing or separating couples continue to benefit from this rule in the tax year in which they separate. However, after that, transfers take place at market value in accordance with the normal CGT rules.
Russell-Cooke partner Rebecca Fisher comments in Accountancy Daily that extending the window between the divorce and the end of the tax year to a minimum of a two-year window would make a significant difference to couples already under strain at a difficult time in their lives.
OTS proposes further reforms to capital gains tax is available to read on the Accountancy Daily website via subscription.
Rebecca is a partner in the private client group advising families and individuals on all aspects of private client law including wills, estate planning, administration of estates, trusts and powers of attorney.
She regularly advises clients including entrepreneurs, business owners and multi-generational family businesses on succession planning, with particular focus on inheritance tax and capital gains tax planning. Rebecca fully understands the unique challenges that family businesses face.