A gate structure straddling a plurality of semiconductor material portions is formed. Source regions and drain regions are formed in the plurality of semiconductor material portions, and a gate spacer laterally surrounding the gate structure is formed. Epitaxial active regions are formed from the source and drain regions by a selective epitaxy process. The assembly of the gate structure and the gate spacer is cut into multiple portions employing a cut mask and an etch to form multiple gate assemblies. Each gate assembly includes a gate structure portion and two disjoined gate spacer portions laterally spaced by the gate structure portion. Portions of the epitaxial active regions can be removed from around sidewalls of the gate spacers to prevent electrical shorts among the epitaxial active regions. A dielectric spacer or a dielectric liner may be employed to limit areas in which metal semiconductor alloys are formed.