Changes to Property Capital Gains Tax Put Pressure on Divorcing Couples
A new ruling may affect separating couples by increasing the amount of capital gains tax (CGT) paid by those who choose to move out of the family home before the property is sold. Capital gains tax is applicable when you sell an asset that has increased in value since its purchase. Property is one of the most commonly taxed asset, and also often makes up the most valuable shared asset for divorcing couples. Current rules state that to avoid paying capital gains tax you must sell a property within 18 months of moving out. However, as of April 2020, this timeframe will be reduced to just nine months. After this ...
