{"id":1360,"date":"2023-01-24T18:22:41","date_gmt":"2023-01-24T18:22:41","guid":{"rendered":"https:\/\/accountants247glasgowsouth.co.uk\/?p=1360"},"modified":"2023-01-24T18:22:42","modified_gmt":"2023-01-24T18:22:42","slug":"how-to-transfer-your-assets-following-a-separation","status":"publish","type":"post","link":"https:\/\/accountants247glasgowsouth.co.uk\/?p=1360","title":{"rendered":"How to transfer your assets following a separation"},"content":{"rendered":"\n

Separating from a partner is already an emotional rollercoaster \u2013 so you don\u2019t need the added worry of a capital gains tax bill. Talk to us about tax-efficient ways to transfer your assets. #separation #divorce #CGT<\/p>\n\n\n\n

When couples separate, tax issues aren\u2019t generally at the top of your list of worries. But the rules around disposal of your shared home may have some unexpected tax consequences.<\/p>\n\n\n\n

We\u2019ve highlighted the main areas to be aware of, and how to plan the transfer of assets in a way which keeps both parties \u2013 and HM Revenue & Customs (HMRC) \u2013 happy.<\/p>\n\n\n\n

A change in living arrangements to agree on<\/strong><\/p>\n\n\n\n

The decision to separate from your partner will usually mean a change in living arrangements.<\/p>\n\n\n\n

Your shared home may be sold, with each of you making new arrangements. Or one partner may remain in the home, with the other partner surrendering their interest in the property. Another option may be for one partner to remain in the property until (for example) minor children come of age, and for the property to be disposed of jointly at that point.<\/p>\n\n\n\n

Under normal circumstances, a transfer of assets between spouses is made on a \u2018no gain\/no loss\u2019 basis. The transferee is treated as if they\u2019d acquired the asset when their partner acquired it, at the cost incurred at that time. But when a couple separates, that same rule applies only until the end of the tax year in which they separate.<\/p>\n\n\n\n

After that, any transfer is deemed to have taken place at market value, with taxable capital gains potentially arising once the transfer is made.<\/p>\n\n\n\n

So, what does this mean for your tax liabilities?<\/p>\n\n\n\n