Sofia Thomas explores the changes to gift relief when business assets are transferred in a divorce
When a couple gets divorced, assets are often transferred between them to satisfy financial claims. Tax reliefs help to mitigate much of the potential capital gains tax that would otherwise arise on the transfers. Transfers in the year of separation take place on the usual no gain, no loss basis between spouses. However, not everything can be agreed in time for this to apply. One valuable and frequently claimed relief in divorce is gift relief; however, HMRC's guidance has been updated, meaning that the availability of the relief is much reduced.