Taxation of Chargeable Gains Act 1992 section 58

Spouses and civil partners

Section 58 sets out the capital gains tax treatment of asset transfers between spouses and civil partners, providing for "no gain, no loss" treatment in specified circumstances including during marriage or civil partnership, after separation within defined time limits, and pursuant to divorce or dissolution agreements.

• Transfers of assets between spouses or civil partners who are living together are treated as taking place at no gain and no loss, meaning no capital gains tax arises for the transferor.
• After separation, no gain/no loss treatment continues until the earlier of the end of the third tax year following the year of separation or the date a court grants a divorce, annulment, dissolution, or separation order.
• Transfers made under a formal agreement or court order in connection with divorce or dissolution of a civil partnership also qualify for no gain/no loss treatment, even after the marriage or civil partnership has ended.
• The no gain/no loss treatment does not apply where the asset formed part of trading stock, is acquired as trading stock, or is transferred by way of donatio mortis causa (a deathbed gift).