TAXATION: CGT reliefs for divorcing couples are confirmed

The Spring Budget has confirmed that the UK government will introduce legislation to introduce capital gains tax (CGT) reliefs for separating couples with effect from 6 April 2023. The legislation will extend the 'no gain, no loss' principle for CGT purposes to the transfer of all assets between separating spouses and civil partners for up to three years after the tax year they cease living together. It will also apply to all transfers of assets undertaken as part of a formal divorce agreement. A spouse or civil partner who retains an interest in the former matrimonial home will be given an option to claim private residence relief (PRR) when it is sold. The legislation is due to come into effect from 6 April 2023.