My sister and I inherited our parents property 25 years ago. We own it as tenants in common. It has been rented out for the whole 25 years and we have paid tax on profits.
We want to sell the property now but will be faced with large CGT bill as whole value of property has risen from £60k to £300k in that time.
If we each gifted half of our share to our respective spouses a month or so before sale (i.e. there would be no 'gain' in the value of the asset over a short period) then I think I'm right in saying we would lower our CGT bill considerably as each spouse would have no gain and our portion of the total gain is halved?
If I'm right could my sister and I go one step further and each gift our total share of the property to our spouses a few months before sale so no gain in value and therefore pay no CGT whatsoever? It seems too good and simple to be true!
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