Definition of living together
![Image to represent Definition of living together](https://cdn.informanagement.com/imglib/54b958f8-db6e-4f82-9c15-416a85353a77.jpg?width=800)
There are many tax reliefs available to married couples or civil partners. In many cases, these reliefs are only available if the couple / civil partners meet the legal definition of living together.
This definition of ‘living together’ is set out in the Income Tax Acts as follows:
Individuals who are married to, or are civil partners of, each other are treated for the purposes of the Income Tax Acts as living together unless:
(a) they are separated under an order of a court of competent jurisdiction;
(b) they are separated by deed of separation; or
(c) they are in fact separated in circumstances in which the separation is likely to be permanent.
It is important to understand that the three alternatives mentioned all require the spouses or civil partners to be separated, meaning their marriage or civil partnership must have broken down. However, if the couple are not living together but their marriage or partnership has not ended, they are still considered to be living together for Capital Gains Tax purposes.
HMRC’s internal manuals on the transfer of assets between spouses discusses this point when talking about a transfer of an asset. The transfer of an asset between spouses or between civil partners will be treated as transfer at no gain/no loss if they are living together.
The date of separation is crucial in determining whether an asset transferred between spouses or civil partners is considered to have been transferred at no gain or loss.
No Advice
The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.
Information
The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.
Share this article