Family Finance

Divorce Tax Planning

print

Divorce Tax Planning

The breakdown of a marriage is a painful process and the concept of “planning” for the tax consequences (of all things) may seem a low priority at best and in poor taste at worst, yet it merits consideration.

In relation to Capital Gains Tax (CGT) it is the date of separation rather than divorce which is key. Spouses and civil partners who are living together can pass assets from one to the other with no chargeable gain arising. This means that no chargeable disposal for CGT arises at that stage when the recipient eventually disposes of the asset they will be assessed for any CGT liability upon the original acquisition cost. The ability to make these inter spousal transfers without crystallising a CGT liability is lost at the end of the tax year when the parties separate permanently. A separation towards the end of a tax year may therefore mean that precious CGT exemptions are lost through lack of time to plan.

A home occupied for use as principal private residence (PPR) is exempt from CGT on sale – but this may be lost after three years or if in the meantime the vacating spouse elects to transfer their PPR exemption to an alternative property.

The position for Inheritance Tax (IHT) is slightly different. Transfers of assets between spouses on death remain exempt (without a ceiling) from IHT until Decree Absolute – whether or not the parties are living together . Disposals of assets by a tax payer are “potentially exempt transfers” (PETs) – so if assets are transferred after Decree Absolute they are a PET and may give rise to an IHT liability should the “Donor” die within seven years. This is a slight simplification as other exemptions might arguably apply but care is needed.

The point is that it will sometimes pay (especially if for example there are second homes or other significant assets such as businesses or portfolios of investments) to consider transferring certain assets ahead of a final settlement. An unwanted tax liability only reduces the pool of resources available to each party.

Employment Law- Fixed Fees

INITIAL FREE HALF HOUR APPOINTMENT

This includes:- Attending you for a preliminary appointment to see whether you have a case or can defend a case. Please note that this is for 30 minutes only and does not include advice in writing.


We are able to offer fixed fees to both claimants and respondents in relation to Employment Tribunal claims. Please contact us for specialist advice and further details.

Preliminary Advice

This includes:

Taking instructions (up to 1.5 hours)

Detailed advice letter

 

Fee £250

VAT @20%

TOTAL £300

Employment Tribunal Proceedings

Advising employee on an Acas Early Conciliation Notification (now an essential first step before lodging an employment claim)

 

Fee £200

VAT @20%

TOTAL £240

  

Preparation of a Claim Form ET1 on behalf of an employee

 

Fee £400

VAT @20%

TOTAL £480

  

Preparation of a Claimant's Schedule of Loss

 

Fee £200

VAT @20%

TOTAL £240

 

 Preparation of a Claimant's List of Documents

 

Fee £400

VAT @20%

TOTAL £480

 

Advising an employee in relation to a flexible working request

 

Fee £400

VAT @20%

TOTAL £480

 

 Preparation of contracts of employment and statutory terms and conditions

 

Fee £250 - £400

VAT @20%

TOTAL £300 - £480

  

Preparation of standard disciplinary and grievance procedures

 

Fee £400

VAT @20%

TOTAL £480

 

Drafting and preparation of Respondent’s Response ET3

 

Fee £400

VAT @20%

TOTAL £480

Preparation of Witness Statements

Fee £200 - £400

VAT @20%

TOTAL £240 - £480

Chris Kingham

Solicitor
CONTACT

Jeremy Sogno

Solicitor
CONTACT

Mary Browne

Solicitor
CONTACT
Contact Us
Question
Call Back
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form

Eastbourne Office

11 Hyde Gardens
Eastbourne
East Sussex 
BN21 4PP
Tel: 01323 720142
DX: 6902 Eastbourne

Lewes Office

Suite 4, Sackville House
Brooks Close
Lewes
BN7 2FZ
Tel: 01273 480234
DX: 3103 Lewes 1

Peacehaven Office

10a Horsham Avenue
Peacehaven
East Sussex
BN10 8LL

 Tel: 01273 582680