While divorce is difficult enough, it is important to keep a tab on potential tax liability and not let the tax consequences of splitting assets, pensions and property sales make things worse. David Brookes FCA, tax partner at BDO, provides a one-stop guide to tax issues
The initial part of a new year is often a time when people start to assess some of their life choices and for some this can result in a decision to ‘consciously uncouple’ or even choose old-fashioned separation and divorce.
Most people accept that divorce is a traumatic time and the last thing on their mind is tax and yet tax can have a considerable impact on the division of assets and an unexpected tax liability can result in a nasty surprise. This is increasingly possible due to ongoing HMRC enquiries into tax deferral or tax avoidance arrangements such as film schemes and impending demands as a result of advance payment notices (APNs) and follower notices (FNs) issued by HMRC.
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