Capital Gains Tax on divorce and separation
Since April 2023, separating spouses and civil partners have much longer to transfer assets between them without triggering a gain.
Updated for the 2026/27 tax year · Reviewed against HMRC guidance
No-gain/no-loss transfers
Transfers between spouses are on a no-gain/no-loss basis in the tax year of separation and for up to three further tax years. Transfers under a formal divorce agreement or court order have no time limit.
The former family home
A spouse who moves out can keep PRR on the former home when it is later transferred to the other spouse under a settlement, provided the remaining spouse still lives there.
A spouse who retains an interest and later receives sale proceeds can claim PRR for their period of occupation, plus the final 9 months.
Selling to a third party
If the home is sold on the open market, each spouse reports their own share of the gain, uses their own £3,000 allowance and pays at their own marginal rate.
Frequently asked questions
This guide is general information based on the Taxation of Chargeable Gains Act 1992 and HMRC guidance (including HS283). It is not personal tax advice — for complex cases speak to a qualified tax adviser.