Transfers stay tax free for a while

Transfers between spouses remain on a no gain, no loss basis until the end of the third tax year after separation, and indefinitely for transfers under a formal court order. Outside that window they are disposals at market value.

Marriage Allowance has to be cancelled

It does not stop by itself. Leaving it running produces an underpayment for whoever received it, collected later.

The family home has its own rules

The leaving spouse can usually still claim private residence relief on a later transfer to the other, but the reliefs are conditional and the conditions are easy to fall outside.

Pension sharing is not a taxable event

A pension sharing order moves value between you without a tax charge, but it does affect both parties' allowances afterwards.

What happens to tax when I get divorced?

The no gain, no loss window on transfers, when Marriage Allowance stops, and why the timing of a separation has tax consequences of its own.

What changes for you

Transfers stay tax free for a while
Transfers between spouses remain on a no gain, no loss basis until the end of the third tax year after separation, and indefinitely for transfers under a formal court order. Outside that window they are disposals at market value.
Marriage Allowance has to be cancelled
It does not stop by itself. Leaving it running produces an underpayment for whoever received it, collected later.
The family home has its own rules
The leaving spouse can usually still claim private residence relief on a later transfer to the other, but the reliefs are conditional and the conditions are easy to fall outside.
Pension sharing is not a taxable event
A pension sharing order moves value between you without a tax charge, but it does affect both parties' allowances afterwards.

The decisions this opens up

Each works on your own figures and shows every option with the workings. Free, and no sign-up.

Should I sell this before or after 5 April?The capital gains exempt amount resets every 6 April and never carries forward. Splitting a disposal across two tax years can use two of them.Should we claim Marriage Allowance?Works out whether transferring part of one personal allowance to the other partner saves tax, what it is worth, and how much four backdated years would add.

Dates this puts in your diary

End of the third tax year after separationThe no gain, no loss window closes for transfers outside a court order
As soon as you separateCancel Marriage Allowance

Run the numbers

Capital Gains Tax Calculator Marriage Allowance Calculator

Software that files it for you

Partner links

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