Taxes Consolidation Act 1997 section 1031O

Transfers of assets where civil partnership dissolved

Section 1031O provides that where assets are transferred between civil partners following the dissolution of a civil partnership, the transfer is treated on a no gain/no loss basis for capital gains tax purposes.

• Where a civil partnership is dissolved and one civil partner disposes of an asset to the other under a court order or separation deed, the disposal is treated as giving rise to neither a gain nor a loss for CGT purposes.
• The no gain/no loss treatment does not apply if the receiving civil partner is not taxable in the State on a gain from a subsequent disposal of the asset in the year of acquisition.
• The relief does not apply where the asset forms part of the trading stock of the civil partner making the disposal, or is acquired as trading stock by the receiving civil partner.
• Where the receiving civil partner later disposes of the asset, he or she is treated as having acquired it at the same time and for the same cost as the original acquisition by the other civil partner.