|Q: Jack and Jill started living apart in November 2018 but there was |
then no contemplation of a divorce. In May 2019 they discussed their
situation and at that point in time decided to get divorced. They
agreed to get divorced in January 2020.
In June 2019 they agreed a plan to transfer assets between themselvesbefore 6 April 2020 as part of the divorce settlement. The proposed
transfers include a large property with a market value of £1 million
which originally cost £200,000 many years ago and which Jack will
acquire from Jill. She is concerned about the CGT implications.
The property being disposed of by Jill shows a gain of £800,000 based on market value. Jill is seeking to rely on a transfer of assets between
spouses who are living together is treated as taking place for such
consideration as will give neither a gain nor a loss to the transferor by virtue of s 58 TCGA 1992.