This Practice Note sets out the tax implications to be considered on relationship breakdown, ie separation, Divorce or Dissolution, including income tax, Capital gains tax, Stamp duty land tax and inheritance tax. Specialist advice should be sought where necessary.

As there are no specific tax consequences to the relationship between unmarried couples or those who have not formed a civil partnership, so there are no special tax rules relating to their relationship breaking down. There is, however, a general rule for capital gains tax (CGT) that transactions not at arm's length must be recalculated as having been at market value—a transaction between an unmarried/non-civil partnership couple living together may well be treated as not having been at arm's length.

For married couples and civil partners, the main tax provisions relating to spouses/civil partners cease to apply when the relationship has broken down, rather than by reference to the date of the conditional order or final order. For inheritance tax (IHT) purposes, the date of the final order is relevant.

Note that divorce, dissolution or separation does not