Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
, see all updates

Transfer of assets: between husband and wife or between civil partners: separation, divorce or dissolution: date of disposal where asset is transferred under a Court Order

The date of disposal where an asset is transferred under a court order is dependent on the particular circumstances of the transfer. The guidance below sets out the correct position in relation to the various circumstances.

Asset transferred under a court order before the date of decree absolute or before the dissolution of the civil partnership is made final.

Court orders of this type do not take effect until decree absolute has been granted or until dissolution has been made final. It is well established in case law that until the order takes effect it is contractual in nature. Therefore where an asset is transferred in pursuance of such an order before the date of decree absolute or the dissolution of the civil partnership is made final, the transfer is treated as a disposal under a contract. The parties are treated as entering into the contract on the date of the court order.

Asset transferred after the date of decree absolute or after the dissolution of the civil partnership is made final, in pursuance of a court order made before the date of decree absolute or before the dissolution of the civil partnership was made final.

As set out above, a court order embodying the terms of the settlement made before the decree absolute or before the date of dissolution of the civil partnership, remains contractual in nature until the date of the decree absolute or the date the dissolution is made final. After that date the court order ceases to be contractual and the terms derive their legal effect from the court order itself.

So where an asset is transferred following the date of decree absolute, or following the date dissolution is made final, in pursuance of an order made before decree absolute or before dissolution is made final, the date of disposal is the date of decree absolute or the date the dissolution is made final.

Asset transferred in pursuance of a court order made after the date of decree absolute or after the date the dissolution of the civil partnership is made final.

Where a court order is made after the date of decree absolute or after the date that the dissolution of the civil partnership is made final and an asset is transferred in pursuance of that order, the date of disposal is the date of the order.

Where you are required to consider the date of disposal of an asset transferred under a court order you will need to obtain a full copy of the order. This may enable you to resolve the matter, but if not Capital Gains Technical Group can give further advice.