(1) The Taxation of Chargeable Gains Act 1992 is amended as follows.
(2) In section 58 (spouses and civil partnerships), for subsection (1) substitute—
“(1A) If an individual (“A”) disposes of an asset to another individual (“B”) in circumstances where any of subsections (1B) to (1D) applies, A and B are to be treated as if B acquired the asset from A for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to A.
(1B) This subsection applies where the disposal is made while A and B—
(a) are married to, or are civil partners of, each other, and
(b) are living together.
(1C) This subsection applies where the disposal is made—
(a) while A and B are married to, or are civil partners of, each other,
(b) at a time when A and B have ceased to live together, and
(c) before the earlier of—
(i) the last day of the third tax year after the tax year in which A and B ceased to live together, or
(ii) the day on which a court grants an order or decree for A and B’s divorce, the annulment of their marriage, the dissolution or annulment of their civil partnership, their judicial separation or, as the case may be, their separation in accordance with a separation order.
(1D) This subsection applies where—
(a) A and B have ceased to be, or are in the process of ceasing to be, married to, or civil partners of, each other, and
(b) the disposal of the asset is in accordance with an agreement or order within subsection (2)(a) or (b) of section 225B (disposals in connection with divorce etc).”
(3) In section 225B (disposals in connection with divorce etc)—
(a) in subsection (1)(b), after “to” insert “someone other than”;