Guy
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Advance Payment of CGT
In a situation whereby a formal court agreement establishes the transfer of a property (non-family home) as part of financial remedy proceedings, and where the parties are not yet separated, my understanding is that the correct application of tax legislation is that Capital Gains Tax does not arise until such time as the spouse receiving the property later sells it. https://www.gov.uk/government/publications/capital-gains-tax-transfer-of-assets-between-spouses-and-civil-partners-in-the-process-of-separating/capital-gains-tax-separation-and-divorce If, however, the parties wish to crystallise any capital gain at the time of separation/agreement, is it permissible for the CGT to be paid voluntarily by the “donor spouse" at today’s property valuation and tax rates - or would doing so defeat any purpose of the revised (or existing) tax rules?