Hi,
Two brothers own a property portfolio jointly of value c.£16m, over about 20 properties.
They now want to split the portfolio into two - 50% each.
Will they suffer capital gains tax? Stamp duty?
Thanks.
Replies (2)
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The problem is SDLT
They should be able to split the properties without CGT - there is a statutory relief for splitting jointly owned property. But you need to check the detail.
The problem is SDLT, which will apply to the amount of any borrowing.
Re: Splitting a jointly held property portfolio
Capital gains tax: I think that the roll-over relief is under TCGA 1992 s.248A (inserted by SI 2010/157). If one of the owners receives property worth more than what he gives up, he will incur Capital Gain equal to the difference, otherwise, the transfers would be at no gain / no loss.
In case of property exchange, would SDLT charge be based on the amount of consideration by any chance?