Capital Gains Tax victory as cost of divorce for Britons ‘reduced' in vital update

Capital Gains Tax victory as cost of divorce for Britons ‘reduced' in vital update
© Getty capital gains tax

Capital Gains Tax was recently reviewed alongside Inheritance Tax by the Office of Tax Simplification (OTS). With the Chancellor of the Exchequer often looking towards the OTS for guidance, the review is set to put important changes into motion. In total, the Government has accepted five key recommendations from the OTS’ second report on Capital Gains Tax.

This is in an attempt to provide practical simplifications for taxpayers.

The tax is charged on the profit a person makes when they sell something which has increased in value.

It is only the gain a person makes which is taxed, rather than the amount of money they receive.

Some assets will be tax-free, and CGT is not charged if all gains in a year are under the tax-free allowance.

Capital Gains Tax victory as cost of divorce for Britons ‘reduced' in vital update
© Getty cgt UK 2021

One key change is being welcomed, and that is the alteration when it comes to the approach to divorce.

As many people in divorce proceedings will be splitting their assets and selling them, it could incur a substantial CGT bill.

However, the Government is now looking into its attitudes when it comes to Capital Gains Tax and couples who are separating.

Julia Rosenbloom, tax partner at Smith and Williamson, analysed the technical changes in further detail.


DWP update as £800 payment available to Britons before Christmas [INSIGHT]

‘Really good news for pension savers’ as new rules come into force [ANALYSIS]

State pension age Britons with arthritis may get boost of up to £358 [EXPLAINED]

She said: “Some of the agreed changes should be particularly welcomed, not least the confirmation from Government that ‘the no gain no loss window’ on separation and divorce should be extended.

“At the moment, transfers between spouses are only tax neutral in the tax year of separation.

“While the Government has agreed that this should be extended, we will have to wait for the outcome of a consultation to know to what extent people will be given extra time.

“This will, for many, reduce the CGT cost of getting divorced and give people a bit more time to sort out their financial affairs in such circumstances.”

Capital Gains Tax victory as cost of divorce for Britons ‘reduced' in vital update
© Getty capital gains tax HMRC

Under current laws, if a couple are married, they can transfer assets from one spouse to another without a Capital Gains Tax bill.

However, this changes when a couple separates, so it is worth paying attention.

In these circumstances, the transfer between one spouse to another is only free from CGT up until the end of the tax year in which the couple separated.

After a relationship has legally ended, the Government website warns Capital Gains Tax is likely to be applicable.

But it also acknowledges the rules for working out gain or loss can often be complex.

As a result, it encourages Britons to contact HM Revenue and Customs (HMRC) or seek professional tax help on the matter.

Individuals will need to provide the date of:

  • The decree absolute or dissolution
  • Any court order if assets were transferred this way
  • Any other contract showing the transfer of assets

However, Ms Rosenbloom warned of the limitations of the recent announcement for Britons.

She added: “Overall, it is important to note that these responses from the Government only largely concern acceptances or rejections on technical and administrative aspects of CGT.

“Crucially, this update gives no real steer on whether we might see an increase in CGT or other changes to the CGT regime.”

Consequently, Britons will have to hold their breath when it comes to major changes to the levy.

News Related


Ropeway from Dharamshala to McLeod Ganj in just 5 minutes and visit these fascinating places

© Provided by The Indian Express The distance between Dharamshala and McLeod Ganj in Himachal Pradesh will shrink drastically as a ropeway will now connect the two tourist hotspots in ... Read more »

Deutsche Bank schreibt Milliardengewinn - bestes Ergebnis seit 2011

© KEYSTONE/EPA/RONALD WITTEK Die Deutsche Bank knüpft mit einem Milliardengewinn 2021 an ihre besten Zeiten an. Sowohl vor als auch nach Steuern fuhr der Frankfurter Dax-Konzern das beste Ergebnis seit ... Read more »

Vertrauliche Dokumente stützen linke Befürchtungen: Bürgerliche planen weitere Steuergeschenke

Die Linke wirft den Bürgerlichen Salamitaktik bei der Stempelsteuer vor. Nicht ohne Grund, wie vertrauliche Dokumente belegen. Demnach war der Rückzug von weiteren Steuerstreichungen auch abstimmungstaktisch bedingt. © Bürgerliche ... Read more »

Market volatility on Budget day: Here's what Zerodha's Nikhil Kamath says

© Provided by Business Today Market volatility on Budget day: Here’s what Zerodha’s Nikhil Kamath says Zerodha co-founder Nikhil Kamath on Thursday analysed what the sentiments of retailers, and brokers ... Read more »

After BJP, Congress says wasn't invited to West Bengal govt's Republic Day event

Congress leader Adhir Ranjan Chowdhury on Thursday said the West Bengal Government did not invite him for the state’s Republic Day celebrations. Chowdhury is the second politician from the state ... Read more »

Chandigarh to reopen schools for classes 10-12 from February 1

Chandigarh to reopen schools for classes 10-12 from February 1 Chandigarh has announced to reopen schools for classes 10 to 12 from February 1. Banwarilal Purohit, Chandigarh Administrator, on Thursday ... Read more »

What is Dynamic Range and How to Use it On Your Smartphone to Improve Photos?

Modern-day cameras – DSLRs or even smartphones are equipped with abilities to click pictures in great detail. However, most people often fail to make the most of this ability due ... Read more »

Jackie Weaver to appear on Celebrity Mastermind – and her specialist subject is Vin Diesel movies

Jackie Weaver will be competing on Celebrity Mastermind – and her specialist subject is a Vin Diesel film franchise. BBC has released a line-up of 56 stars who will compete ... Read more »

Only BJP Can Give Security to UP and Entire Country, Says Amit Shah as He Slams Akhilesh Yadav

© Provided by News18 Only BJP Can Give Security to UP and Entire Country, Says Amit Shah as He Slams Akhilesh Yadav Saying that only the BJP government can give ... Read more »

Edinburgh dead rabbits: Distressing image shows two dead pets dumped near Burdiehouse burn

© Two rabbits were found dead near Burdiehouse Burn (Photo: Scottish SPCA). WARNING: Some readers may find an image attached in this article distressing. The rabbits were discovered by Burdiehouse ... Read more »

Dalkeith and Danderhall councillor calls for police to end non-disclosure agreements following FOI findings

© Councillor Stephen Curran (Labour). The Labour councillor, who represents Dalkeith and Danderhall, discovered that these cost tax payers £700,000. Cllr Curran sought the FOI after hearing about Police Scotland ... Read more »

Padma award to Azad triggers speculations in J&K

© Provided by The Statesman Padma award to Azad triggers speculations in J&K The speculations triggered here on the issue of senior Congress leader Ghulam Nabi Azad getting the third ... Read more »

Royal Family: The Queen has 3 corgis and their names are all really random

The Queen is known to have a strong love for her pet corgis, who have been by the monarch’s side throughout her long reign. Over the many years, she is ... Read more »

Indian frontline worker in UAE beats death, makes miraculous recovery from Covid-19

© Provided by The Financial Express The healthcare group will offer a job to his wife and will take up the expenses of the education of his child. (Representative image) ... Read more »

‘Mana maruah dia', soal Muhyiddin selepas Mazlan Bujang keluar parti

© Provided by Free Malaysia Today Muhyiddin Yassin berkata, walaupun dilihat ‘underdog’ namun PN tidak akan memberi laluan mudah kepada BN untuk membentuk kerajaan negeri. PETALING JAYA: Presiden Bersatu Muhyiddin ... Read more »

Bigger job threat to black NHS staff over Covid vaccine

© PA Wire Coronavirus A disproportionate number of black healthcare staff are at risk of losing their jobs if they fail to get vaccinated against Covid, one of the NHS’s ... Read more »

Tove Lo's parents weren't happy about her secret wedding

© Bang Showbiz Tove Lo married in secret in July 2020 Tove Lo’s parents “were not happy” about her secret wedding. The ‘How Long’ hitmaker tied the knot with Charlie ... Read more »

More than half of Covid-19 patients treated primarily for something else

More than half all Covid patients in hospital trusts in England are being treated primarily for something else, new figures show. Of the 13,023 patients reported as having the virus ... Read more »

Assam CM's carcade to be limited to six in Guwahati, 12 in other districts

The Assam Chief Minister’s convoy will be limited to six cars in Guwahati and 12 cars in other districts, the Assam cabinet decided on Thursday. Assam Health Minister Keshab Mahanta ... Read more »

Sokongan peminat dorong Halo Telco bekerjasama dengan KDA FC

© Provided by Sinar Harian FAKTOR peminat yang ramai dan sokongan hebat yang diberikan kepada Kedah Darul Aman (KDA) FC muncul antara sebab Halo Telco memilih untuk menjadi rakan rasmi ... Read more »

BeHolocaust-Gedenktag: Erinnerung an Opfer des NS-Terrors nicht verblassen lassen

Deutscher Bundeskanzler Olaf Scholz (SPD) hat zum 77. Jahrestag der Befreiung des Konzentrationslagers Auschwitz dazu aufgerufen die Erinnerung an die Verbrechen der Nationalsozialisten nicht verblassen zu lassen. © Bereitgestellt von ... Read more »

Boss: So pimpt Daniel Grieder die Modemarke

Neues Logo, neue Ambassadoren: Boss soll per gewagtem Refresh für Junge attraktiv werden. Seit Mitte 2021 ist der Schweizer Daniel Grieder der Chef der traditionsreichen deutschen Modemarke Boss. Angetreten ist ... Read more »

Perjelas kenapa Genting HK diberi pinjaman tanpa jaminan, Anwar beritahu Tengku Zafrul

© Provided by Free Malaysia Today Ketua Pembangkang Anwar Ibrahim mendesak Menteri Kewangan Tengku Zafrul Abdul Aziz segera menjawab persoalan mengapa bank dibenarkan memberi pinjaman tanpa jaminan kepada Genting Hong ... Read more »

Konstant vorne dabei sein - KTM Red Bull MotoGP Teampräsentation 2022

KTM hat sein MotoGP-Werksteam sowie die Ziele für 2022 vorgestellt. Eine weiterentwickelte RC16 und bewährte Fahrer sollen dauerhaft für Top-Plätze sorgen. © KTM Die Vorstellung des KTM Red Bull-Teams für ... Read more »

Produktion des Ferraris mit Kombi-Heck gestartet - Niels van Roij Daytona Shooting Brake Hommage

Auto-Designer und Coachbuilder Niels van Roij setzt sein nächstes Projekt wieder auf Basis eines italienischen Sportwagens um. Das Vorbild stammt aus den 70ern. © Niels van Roij Design Als das ... Read more »

Kosten 5.1 Prozent rauf – Krankenkassen warnen vor Prämienerhöhung

Krankenkasse: Eine Frau mit Gipsbein ruf an. Wird wohl wieder schmerzhafter: Der Blick auf die Prämienrechnung. Der Krankenkassen-Dachverband Santésuisse warnt vor Prämienerhöhungen wegen gestiegener Kosten bei der Grundversicherung. Am meisten ... Read more »

Krankenkassen warnen vor Prämienerhöhung wegen gestiegener Kosten

© KEYSTONE/CHRISTIAN BEUTLER Der Krankenkassen-Dachverband Santésuisse warnt vor Prämienerhöhungen wegen gestiegener Kosten bei der Grundversicherung. Am meisten dazu beigetragen haben die Ausgaben für Physiotherapie, für den ambulanten Arzt- und Spitalbereich ... Read more »

Trotz Missbrauchsgutachten: Kardinal Marx wird weiter im Amt bleiben

Trotz dem Missbrauchsgutachten wird der Erzbischof von München und Freising, Kardinal Reinhard Marx, weiterhin im Amt bleiben und nicht zurücktreten. © Bereitgestellt von Blick Kardinal Marx wird weiter im Amt ... Read more »

Poland starts building wall on border with Belarus

KUZNICA, Poland — Poland has started building a $394 million high wall on its eastern border intended to block migrants pushed by Belarus in what the European Union calls a ... Read more »

Kate Hudson wraps up warm in black trench coat and wool hat as she steps out in a chilly New York City

Kate Hudson wrapped up warm as she stepped out in a chilly New York City on Wednesday.  The 42-year-old actor opted for comfort in an oversized black trench coat and wool ... Read more »

Chelsea have £3m bid to sign their OWN PLAYER rejected after Lyon turn down offer to end Emerson's loan in January as Thomas Tuchel scrambles to solve his left-back crisis

Chelsea are short of left-back options after Ben Chilwell's season-ending injury They tried to being Italy international Emerson back from his loan at LyonBut the French club reportedly rejected Chelsea's £3m compensation offer  Read more »

In love with the shape of newt! Animal-loving Ed Sheeran installs frog-friendly fencing around his new private chapel to make sure no amphibians are harmed by building work

The popstar, 30, put up the Heras mesh panels to try to keep amphibians out of site at his £3.7million homeThe move, revealed by the latest planning application, is understood to be to protect the great crested newtsIt comes after it emerged he submitted plans to build a burial chamber at chapel near Framlingham in Suffolk Read more »

Nissan alliance to invest $25 bn in electric vehicles over 5 years

© Behrouz MEHRI The alliance is among several major global carmakers increasingly prioritising electric and hybrid vehicles The Nissan auto alliance said Thursday it will invest more than $25 billion ... Read more »

Germany charges Russian scientist accused of spying

© Provided by DW The suspect is being investigated by the German Federal Prosecutor Germany’s federal prosecutor announced charges against a Russian scientist employed at a German university in Bavaria ... Read more »

John Kerry hosts Major Economies Forum on climate crisis

John Kerry on Thursday is hosting his first major international climate meeting of the year with the world’s largest greenhouse gas emitters. © Jeff J Mitchell/Getty Images/FILE John Kerry speaks ... Read more »

Leni Robredo defends remarks criticizing opponents in Boy Abunda interview

Vice President Leni Robredo stood by her statements criticizing her opponents in the presidential elections, as some analysts took stock whether her seemingly “off-brand” statements may be beneficial or detrimental ... Read more »

Liam Payne reveals he got COVID-19, moves ‘Here's to the Future' show to February

Liam Payne Twitter Liam Payne revealed he tested positive for COVID-19, urging him to push his January show weeks later. The English singer-songwriter made the announcement on social media with ... Read more »

Uncovered: A draft Trump executive order to seize voting machines from contested states

The House panel looking into the attack on the U.S. Capitol has investigated tens of thousands of government documents, but one stands out. © Provided by National Post Donald Trump ... Read more »

PN hopes for fair campaign guidelines

© Provided by MalaysiaNow Perikatan Nasional (PN) today urged the Election Commission (EC) to lay out the SOPs and campaign methods allowed for the Johor state election ahead of time, ... Read more »

Dua lelaki ditahan kes tular amuk pecahkan cermin kereta

© Provided by Sinar Harian TAIPING – Polis telah menahan dua lelaki bagi membantu siasatan kejadian amuk hingga merosakkan cermin kereta yang videonya tular di media sosial sejak Rabu. Kejadian ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic