Jointly held property

16 April 2013

Issue: 4398 / Categories: Forum & Feedback , Capital Gains

The co-owners of non-residential buildings wish to rationalise their ownership so that they each own individual properties rather than shares in the same properties

There used to be an extra-statutory concession (ESC D26) which gave relief where the joint owners of several properties could exchange their interests so that no capital gains tax was payable if they became sole owners of separate properties as a result of the transfers.

However this concession was withdrawn by HMRC in 2010. The replies to a previous query on this subject suggested that the concessionary relief was replaced by relief in TCGA 1992 Part VII (s 248A to s 248E).

However there was some concern that the query referred only to “a portfolio of properties” which by any normal interpretation would mean freehold or leasehold buildings whereas the replies to it refer only to land. HMRC’s Capital Gains Manual at CG73002 to GG73025 mentions “land” but not “buildings”.

I have raised this matter with HMRC’s technical department who were adamant that the...

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