Q&A: divorce and capital gains tax on property sale

In this week’s Q&A, Amaira Badat, tax adviser at Croner-i, considers the capital gains tax implications when a divorcing couple has several properties

We represent a client who is going through a messy divorce. The couple own their main home and a rental property jointly. They separated in January 2022 when my client moved out, and it has taken this long to get to a stage where they have agreed that my client will keep the rental property (which has long-term tenants), and his former wife will keep the main residence.

The divorce is still being finalised, but they want to know the implications if these transfers happened in a court order dated before or after April 2023, as they are aware there are some new rules coming in.

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