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Married couple splitting assets prior to divorce

Main question in body- Married couple are splitting assets prior to divorce

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I could not see this question anywhere so apologies if it has been asked before.

Husband and wife own a property that they bought 10 years ago, lived in for 3 years, then bought an additional property to live in, renting the 1st property out on the open market.
They are in the process of a divorce (Expected to complet in Jan 2020 but is completely on good terms so no court or anything tricky involved in splitting assets as its all been happily agreed.) but have decided to "split" the properties out now so they can individualy live in one property in the meantime.
If husband takes property 1, wife takes property 2. Presumably the gain only exists on the period property 1 was rented, then everything else is under PPR and tranfers between eachother are still valid as gift to spouse?

Thanks in advance for you help

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By Tax Dragon
21st Oct 2019 13:05

There's not enough information to answer for you, so here are some pointers. References are to TCGA 1992.

Connected persons (s18 and s286)
Living together (s58 and s288(3))
Joint property (s248A-E)

You may need to come back for more, depending.

By the way, these are hardly "gifts".

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By johngroganjga
21st Oct 2019 14:11

You don’t mention when they separated. If before 6 April 2019, they have lost the opportunity for spouse to spouse transfers on a no gain no loss basis. They will be in to market value substitution for transactions between connected persons.

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By bernard michael
21st Oct 2019 15:59

I had a similar problem which was answered by the brethren

https://www.accountingweb.co.uk/any-answers/sale-of-rental-property-afte...

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