The end of a relationship, particularly divorce is difficult for so many reasons, but you may not realise that divorce and the end of a marriage or civil partnership, could lead to tax complications.
Most people know that transfers of assets between married or civil partnered couples are free from tax, but you may not realise that this beneficial treatment continues to the end of the tax year in which the relationship ends from the date you separate permanently, – i.e. you have from the date of separation to the next 5 April to use the exemption.
This can be a useful exemption if property, business shares, or investment portfolios, for example, must be transferred between the couple.
However, this is not a particularly long period of time to get things sorted, so, we recommend that you contact your accountant or financial advisor us as soon as practicable so they can help you organise your financial affairs at this distressing time.
As the tax exemption does not extend to unmarried couples, it is perhaps even more important for unmarried couples to gain professional advice to reduce any unwelcome tax liabilities following the separation.
The end of a relationship, like the beginning of one, is a time to look at your financial interests and make sure everything is in order.
As well as the tax consequences of a separation Robson Laidler Wealth can assist with your investments, pensions and insurances and a fair resolution all.
Our Wills service, Robson Laidler Wills, can update your will and Lasting Power of Attorney.
Please do not hesitate to contact us to see how we can help you through the difficult times.