Hi
Is CGT liable if a property is transferred to ex-spouse as a result of a court order (in May 2024), where the separation was 5 years ago. And the decree absolute was granted 2 years ago.
Legisation seems to say no tax is due, (58 1D) ... but looks like the help pages only cover up to 58 1C.
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58(1A) If an individual (“A”) disposes of an asset to another individual (“B”) in circumstances where any of subsections (1B) to (1D) applies, A and B are to be treated as if B acquired the asset from A for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to A.
58(1B) This subsection applies where the disposal is made while A and B–
(a)are married to, or are civil partners of, each other, and
(b)are living together.
58(1C) This subsection applies where the disposal is made–
(a)while A and B are married to, or are civil partners of, each other,
(b)at a time when A and B have ceased to live together, and
(c)on or before the earlier of–
(i)the last day of the third tax year after the tax year in which A and B ceased to live together, or
(ii)the day on which a court grants an order or decree for A and Bʼs divorce, the annulment of their marriage, the dissolution or annulment of their civil partnership, their judicial separation or, as the case may be, their separation in accordance with a separation order.
58(1D) This subsection applies where–
(a)A and B have ceased to be, or are in the process of ceasing to be, married to, or civil partners of, each other, and
(b)the disposal of the asset is in accordance with an agreement or order within subsection (2)(a) or (b) of section 225B (disposals in connection with divorce etc), but as if, in subsection (2)(a), after “partner” there were inserted “, or former spouse or civil partner,”.
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I noticed an inspector guide just say put zero and attach the court order.
