Capital gains tax: transfers of assets between separating spouses and civil partners

Government announcements on legislation day include possible changes to the capital gains tax rules on separation, The announcement details that:

• After the year they stop living together, separated spouses or civil partners have up to three years to make no gain or no loss transfers;
• Assets transferred between separating spouses or civil partners as part of a legal divorce agreement will also be subject to no gain or no loss treatment.
• When the former matrimonial home is sold, a spouse or civil partner who still has a stake in it has the opportunity to apply for private residence relief; and
• When the former matrimonial home is eventually sold, some individuals who transfer their stake in it to their ex-spouse or civil partner are entitled to a portion of the proceeds. The proceeds from the ultimate sale will be subject to the same tax treatment as when they sold their original interest in the house to their ex-spouse or civil partner.

These changes are set to apply to disposals on or after 6 April 2023.