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9/18/2009
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 16,712
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
VerifiedCan you tell me what the relationship between the two of you actually is. Are you just friends? Can you confirm that the properties are not owned by each of you through a company.
You should be able to claim relief under Extra Statutory Concession D26. This allows jointly held property to be partitioned or split without incurring an immediate charge to CGT on the simple division of a property portfolio.
CGT and Stamp Duty should only be a problem if there is a cash exchange involved which may be needed to to ensure that both parties are equal after the exchange. There is also an article here which may be of interest.
You ought to take proferssional advice on the structuring any deal so as to minimise any exposure to CGT and Stamp Duty.
CGT and Stamp Duty should only be a problem if there is a cash exchange involved which may be needed to to ensure that both parties are equal after the exchange. There is also an article here which may be of interest.
You ought to take proferssional advice on the structuring any deal so as to minimise any exposure to CGT and Stamp Duty.
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 16,712
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
VerifiedTony Tax and 87 other UK Tax Specialists are ready to help you
The idea behind ECS D26 is to divide properties between, in your case, two people with no cash exchange so if you are both effectively taking on a similar amount of debt from each other as a result of the split, there hasn't really been an exchange of value. Presumably, the overdraft was in joint names so there will have been no cash exchange there.
Clearly, the mortgages are going to have to be reorganised into single names in order to separate the properties into two names.
You should make the claim under ESC D26 in any event as you have no choice but the preferred way of doing this sort of thing is not to involve any exchange of cash.
Clearly, the mortgages are going to have to be reorganised into single names in order to separate the properties into two names.
You should make the claim under ESC D26 in any event as you have no choice but the preferred way of doing this sort of thing is not to involve any exchange of cash.
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 16,712
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
VerifiedTony Tax and 87 other UK Tax Specialists are ready to help you
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