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Capital gains tax relief for the exchange of interests in partnership assets.
My question concerns interests in partnership assets that are swapped within the partnership so that each relevant partner will have a capital assets share of 100% of the specified assets under the terms of a revised partnership agreement. In these circumstances is it correct that HMRC’s Statement of Practice D12 trumps the operation of relief under TCGA 1992 s 248A?
The facts are that a farming partnership of three individuals owns farmland. There are three distinct fields of equal value and each partner wants a 100% share of each distinct parcel.
There is a change in factional shares involving consideration and any gain can be rolled over under TCGA 1992 s 152 following the SP D12. So far so good.
But what if the partnership assets involve three farmhouses occupied by each respective partner? Here is it likely that s 152 rollover would be denied...
