CGT on business assets

The Inland Revenue has reversed its position on imposing capital gains tax on the transfer of business assets in divorce proceedings following the decision in G v G [2002] EWHC 1339. Its previous position that assets transferred by court order on divorce should be chargeable because the right to pursue a court action amounted to a non-cash consideration no longer applies to transfers that took place on or after 31 July 2002 and to cases that had not settled by that date.