Capital gains tax on transfer of land

[dotto]

Have now purchased property on large plot of land. Three owners, all living in property. Two owners now wish to remain in property and refurbish. One owner wishes to build on land at the side, which is effectively the garden. Been told there is relief for exchanges of joint interests. Have copy of page 12059 Extra statutory concessions but don't really understand it. Can we transfer the side plot without incurring CGT. There will be no money involved. We have only just moved into the property - one month - and two of intend remaining there. Does the rule re length of time in PPR apply in this case.

Your help is appreciated.

Thank you.

[Instinctive]

I don't think that the relief for exchange of interests in land is quite appropriate in your case.

Assuming that the house was not bought with a view to develope and to make a gain, and assuming that the garden and grounds are within the permitted area of 1/2 hectare, the effective exchange of shares in house and land will be exempted from CGT as it has been used as PPR for all the 3 joint owners.

Ramnik