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