Tax on the profit (gain) made when an asset such as a property or shares is sold or transferred for more than it cost. In financial remedy cases, transfers between spouses during the marriage are 'no gain/no loss' for CGT. Since 6 April 2023, this also applies to transfers made up to three tax years after the tax year of separation, and to transfers made at any time under a divorce agreement or court order. Other later transfers can create a liability. Orders can require one party to pay or indemnify the other for CGT arising from the order.
In Plain English
A tax you pay on the profit when you sell or give away something valuable, like a house. In a divorce, you usually don't pay it if you transfer things quickly, but you might later on.
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