Tax when you divorce

Capital gains transfers between spouses, stamp duty on a buyout, and the tax points that catch people out.

Updated 19 August 2026·6 min read
Written by CalmSplit Editorial TeamReviewed by Ramani GillLast reviewed 19 August 2026England & Wales

Most divorcing couples meet tax at three points: transferring assets, selling the home, and buying somewhere new.

Capital gains

Transfers between spouses are made on a no gain no loss basis, and the rules give separating couples a window after the tax year of separation to transfer without an immediate charge. Timing matters, so check before you sign.

The family home

Private residence relief usually covers the home you lived in, but a departing spouse who keeps a share for years may need to consider the position on eventual sale.

Stamp duty

A transfer made under a court order on divorce is generally exempt. Buying a second property while still owning a share of the first can trigger the higher rate.

This article is general information about the law of England and Wales, not legal advice. For advice on your situation, speak to a solicitor.

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Frequently asked questions

Is a pension share taxable? ▼

No tax arises on the sharing itself. Income is taxed when drawn in the normal way.

Is maintenance taxable income? ▼

Spousal maintenance is not taxable income for the recipient in the UK.

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