Splitting a jointly held property portfolio

Splitting a jointly held property portfolio

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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.

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By MBK
27th Nov 2011 12:47

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.

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By Novakova
29th Nov 2011 08:06

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?

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