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Divorce - timing this carefully can save the amount of tax paid
Sadly last Monday was what is known as "Divorce Day" when solicitors receive the most enquiries about divorce for the whole year, post the Christmas festivities.
However, if you are contemplating divorce now has anyone advised you about the consequences of timing your divorce in order to save a lot of potential tax charges?
Staying married until after the end of the tax year (6th April) could impact greatly on the tax you may have to pay on divided assets.
The issue here is the tax anyone pays on investments such as a second home, antiques, investments etc. Capital gains tax becomes due at the point when you sell or give away your assets. However HMRC does not charge CGT when assets are given to a husband, wife or civil partner, so long as you can show that you have lived together at some point during the tax year.
The timing of the finalising of the divorce, legally, which in many cases is when assets are legally divided, becomes crucial as if this slips into the new tax year (only 3 months away) then HMRC resets the clock and your transfer of assets is no longer exempt.
Perhaps you do not feel that you want to deal with this at this time, this is quite understandable but do talk with someone who can advise and help you.
Our senior account managers can advise and help you throughout. Our hourly rate is £80.00 plus vat for this and a few hours help could mean you potentially save thousands of pounds, worth thinking about!
Ring the team on 01962 715671 or email [email protected] to arrange a free consultation.
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