Stockport based legal practice, SAS Daniels,is highlighting that the rules affecting Capital Gains Tax are changing for separating couples.
The government announced in the 2013 Autumn statement that there will be some changes to Capital Gains Tax (CGT) from 5 April 2014, which may motivate those separating to act promptly and reach an agreement in relation to the former family home.
Currently, if a couple own and live in a house which is their main residential property and decide to separate, the party who leaves the house has three years to dispose of the property before CGT arises. That could be via a transfer to your former partner or sale.
From 5 April 2014, this length of time will be reduced to 18 months. This applies to couples whether they are living with a partner or if they are married.
Alison Cameron, (left) Solicitor at SAS Daniels, is an expert in the resolution of disputes and in determining financial matters:
“Any tax liability may have an impact, as it could reduce the capital available to each person, in order to buy a new house and move on. The gain is calculated and apportioned over the time the property is owned and not just from separation. As solicitors, we are unable to calculate the gain but we can refer clients to trusted accountants who can advise and guide you.
“Family law is complex and expert advice early on is essential.”
For further information please contact Alison Cameron in our Family team on 0161 475 7624.