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Where Taxpayers and Advisers Meet

Transferring beneficial ownership of property owned by two brothers

umeshg1
Posts:38
Joined:Wed Aug 06, 2008 3:55 pm
Transferring beneficial ownership of property owned by two brothers

Postby umeshg1 » Sat May 08, 2021 1:15 pm

Two brothers own their respective main residence in their joint names. They had a family understanding that they will be 100% beneficial owners of the property they reside in, They now wish to formalise by Transferring their respective shares to each other in the two properties so that they each own the main residence in their names

Can they now prepare a declaration of trust of the family arrangement declaring the beneficial ownership and transfer the properties without incurring any Stamp Duty or Capital Gains Tax

Thank you

umeshg1
Posts:38
Joined:Wed Aug 06, 2008 3:55 pm

Re: Transferring beneficial ownership of property owned by two brothers

Postby umeshg1 » Sat May 08, 2021 1:21 pm

Sorry forgot to mention. They are no mortgages outstanding in these two properties

Thank you

Jholm
Posts:155
Joined:Mon Mar 11, 2019 4:22 pm

Re: Transferring beneficial ownership of property owned by two brothers

Postby Jholm » Mon May 10, 2021 11:00 am

I imagine them gifting their share of the property they lived in would give PPR relief, possibly full? Otherwise, I cannot immediately see a way around the CGT.

Re: SDLT, I would let someone else respond on that.

pawncob
Posts:4676
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Transferring beneficial ownership of property owned by two brothers

Postby pawncob » Mon May 10, 2021 1:50 pm

https://www.taxinsider.co.uk/swapping-or-gifting-interests-in-property-cgt-issues-ta
With a pinch of salt take what I say, but don't exceed your RDA

umeshg1
Posts:38
Joined:Wed Aug 06, 2008 3:55 pm

Re: Transferring beneficial ownership of property owned by two brothers

Postby umeshg1 » Mon May 10, 2021 4:22 pm

Thank you all


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