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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I jointly own five properties with my uncle. We wish

Resolved Question:

Hello, I jointly own five properties with my uncle. We wish to rearrange that so that we each own some of the five properties outright.
What is the best way to do this, minimizing the tax bill?
Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Let me take a look at this and I'll get back to you in a bit.
Expert:  TonyTax replied 1 year ago.
In order to avoid or minimise a charge to CGT and possibly stamp duty, you need to try to split the properties in such a way as to keep any cash equalisation payment as low as possible as it is the cash that will lead to a CGT liability. You can make an election under Section 248A to E of Taxation of Chargeable Gains Act 1992 to defer any CGT charges until future disposals. You would disclose your respective disposals in your tax returns and make the election. Take a look at the following for more information: http://www.hmrc.gov.uk/manuals/cgmanual/cg73000.htm (to 73010) https://www.taxinsider.co.uk/702-Swap_Shop_Exchanging_Interests_in_Land.html https://www.taxinsider.co.uk/381-Splitting_Land_or_Property.html I hope this helps but let me know if you have any further questions.
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