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Is this subject to CGT

Is this subject to CGT

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Two brothers owed a dozen or so properties (personally and jointly) which they let out; each declaring their 50% of income and expenditure and net profit within UK Property pages of their respective Self Assessment Returns.  None of the properties were subject to any mortgage or other charge.  The brothers recently fell out and decided to go their separate ways.  Accordingly, professional valuations were carried out on the properties, reflecting their market values.  The brothers then chose the properties they wanted, before going their separate ways.  Some properties were valued slightly more than their original purchase price, and some less.  Overall, there was no gain and, in any event, no money changed hands.  Nonetheless, where investment properties are sold, CGT pages per SA Returns must be completed of course, irrespective of a taxable gain being made.  That said, because all properties were previously owned jointly by the brothers, with one merely being removed from the deeds giving the other sole ownership, are these particular transactions now subject to declaration for CGT purposes?

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By johngroganjga
22nd Apr 2014 08:23

Yes you have a multitude of CGT disposals here.  Half of every property has been disposed of  But check out the provisions relating to exchanges of joint interests in land, which seem to fit the circumstances perfectly here, and which probably substantially reduce or eliminate the CGT.

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By Bruce Lee
22nd Apr 2014 09:39

Agree with John!

As always, the devil's in the detail, but would hope that Sections 248A to E TCGA 1992 help.

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