Tenants in common split land up

Tenants in common split land up

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Two brothers own 20 acres of as tenants in common. And used for grazing horses.

Brothers decide to split into two 10-acre parcels so that each brother owns one 10-acre plot. Both 10-acre parcels have identical values.

I guess there are no IHT implications as they have exchanged land of identical value. But what about CGT. I guess each needs to do a CGT comp for the disposal of 50% of 10-acres at full market value. But what do you think?
Kevin Ringer

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Morph
By kevinringer
29th Feb 2008 17:07

Thanks
Marcus, thanks for pointing me in the right direction - I've now checked D26 and CG73000 etc and it answers may query in full. You're a star.

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By AnonymousUser
29th Feb 2008 11:10

Not necessarily
have a look at Extra Statutory Concession D26 which covers the area of exchange of interests in jointly owned land. This gives a form of rollover relief. If you look on HMRC website and search for ESC D26 you will find their instructions at CG73000

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