Exchange of interests in property

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

This guidance note concerns the tax treatment where two or more persons exchange interests in land (eg separating a joint buy-to-let portfolio). Land includes any interest or right over land and so covers freehold and leasehold interests in land or buildings.

Although this situation is most likely to apply on the breakdown of a marriage, it is possible that exchanges could be made between unmarried people, such as a cohabiting couple, siblings or friends.

Where a gain arises on the exchange for capital gains tax (CGT) purposes, there are rollover relief provisions that allow each person to defer the gain on the disposal of the old interest into the acquisition of the new interest, providing certain conditions are met.

Stamp taxes may be due on the exchange depending on the facts of the situation. See ‘Stamp taxes considerations on exchange of interests in property’ below.

General capital gains tax principles on exchange of interests in property

Before considering whether a claim needs to be made for relief on the exchange of interests in property,

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Corporation Tax

Double tax relief

Double tax reliefWhen income arises in a foreign country to a UK resident company and that income is taxable in that foreign country, the UK may give the company relief for the foreign tax by crediting the foreign tax against the UK tax charged on that income. This might include withholding tax on

14 Jul 2020 11:31 | Produced by Tolley Read more

Employment Tax

Subsistence expenses

Subsistence expensesIntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel which is not to a permanent workplace. See the Travel

14 Jul 2020 13:43 | Produced by Tolley in association with Philip Rutherford Read more

Value Added Tax

UK VAT invoice requirements

UK VAT invoice requirementsThis guidance note provides details of the information that must be shown on a valid tax invoice. Businesses supplying goods and services that are liable to the standard or reduced rate of VAT are required to issue a tax invoice to another VAT registered person.If the

14 Jul 2020 13:46 | Produced by Tolley Read more

Exchange of interests in property

Exchange of interests in property