CG65330 - Private residence relief: separation, divorce or dissolution of civil partnership: jurisdiction of the courts

In endorsing the agreed terms for a settlement on divorce or permanent separation, the courts have regard to:

• the Matrimonial Proceedings & Property Act 1970
• the Matrimonial Causes Act 1973
• the Civil Partnership Act 2004.
• the Divorce, Dissolution and Separation Act 2020.

Furthermore, in considering the financial provision to be made for a spouse or a civil partner, the Courts have wide discretionary powers to set aside or adjust the respective legal or equitable interests in the matrimonial or civil partnership home.

Any decision on relief where the matter is in doubt must begin with an examination of the order made by the Court together with any relevant items of correspondence between the solicitors of each party establishing the basis on which the transfer of the home was determined. Because the Courts have wide discretion, and because the parties do not always act with the tax consequences of their actions in the forefront of their minds, it can be difficult to determine the effect of the order made by the Court. If you have any difficulty which cannot be resolved by these instructions, please make a submission to the Capital Gains Technical Group.