Rollover relief query

Spousal transfer prior to third part disposal - impact on rollover relief

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Good morning,

Scenario: Husband and Wife jointly own a warehouse that is used in the Wife's partnership (trading business). They intend to sell the warehouse and would like to roll over the gain into a newer/bigger warehouse (i.e. fully invest the proceeds).

The husband is not involved in the partnership and so I was looking at the possibility of transferring the asset to the wife for no gain/no loss before the wife sells the asset to the third party and can then obtain full rollover relief.

This seems to be a a fairly simple workaround to obatin full rollover relief. Am I missing something? Having one of those brain loss days.

Thank you in advance

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By Cylhia66
14th Oct 2022 07:46

The warehouse is partly a commercial building where the wife trades, if I understand correctly?
Is it declared as such (as partly a commercial property) in legal terms? Is there any paperwork sustaining this?

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