Family Law Act, 1995

Capital gains tax treatment of certain disposals by spouses.

52.—(1) Notwithstanding the provisions of the Capital Gains Tax Acts, where, by virtue or in consequence of—

(a) an order made under Part II on or following the granting of a decree of judicial separation, or

(b) a deed of separation, or

(c) a relief order made following the dissolution of a marriage,

either of the spouses concerned disposes of an asset to the other spouse, both spouses shall be treated for the purposes of those Acts as if the asset was acquired from the spouse making the disposal for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the spouse making the disposal:

Provided that this subsection shall not apply if, until the disposal, the asset formed part of the trading stock of a trade carried on by the spouse making the disposal or if the asset is acquired as trading stock for the purposes of a trade carried on by the spouse acquiring the asset.

(2) Where subsection (1) applies in relation to a disposal of an asset by a spouse to the other spouse, then, in relation to a subsequent disposal of the asset (not being a disposal to which subsection (1) applies), the spouse making the disposal shall be treated for the purposes of the Capital Gains Tax Acts as if the other spouse's acquisition or provision of the asset had been his or her acquisition or provision of the asset.

(3) This section shall not apply to disposals made before its commencement.