Commenting on the proposed removal of tax burdens for divorcing or separating couples, Angela Keery, Head of Tax at Belfast accountancy firm Baker Tilly Mooney Moore said:
“The proposed amendments to Capital Gains Tax rules for the transfer of property between divorcing and separating couples will benefit many, including both the higher taxpayers with significant assets and those whose main joint asset is their home. Although a niche area of tax rules, the reality is that around 2,500 couples divorce every year in Northern Ireland. Under the current system, those going through a divorce have been expected to divide their assets in the same tax year as their separation to avoid potentially large Capital Gains Tax bills, which can be a cruel and stressful addition at an already difficult time.”
“Under the proposed legislation, married couples and civil partners will have up to three years to transfer their property, shares, or business interests between them free of Capital Gains Tax by making use of what is known as the ‘no gain, no loss’ window. Basing a divorce around the financial year is a bizarre tax requirement that was by no means practical for couples. If enacted, this legislation will mitigate that artificial pressure for couples and could potentially see them save on large tax bills.”
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