Divorce - They think it's all over, but HMRC doesn't

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Carly Russell looks at the tax implications of divorce

In a society feeling the “pinch”, the financial pot available on divorce has shrunk. It is therefore important to avoid pitfalls that could reduce it further. The top rates of tax are 50% for income and 28% to 44.8% (for some trusts) on some gains. Without tax planning advice, the value of the financial pot could be halved and the wealthier spouse may pay twice as much as they otherwise would have done. The key advice to clients is “don’t wait until it is too late, seek tax advice throughout”. In a divorce, the financial pot available to split between the parties will contain all asse...

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