CGT on property title split

[GT03ROB]

Situation: Currently a single property & title. Property owned a prime residence. Property to be split into 2 separate titles, for sale separately; at different times to different people.

Does this create a CGT liability?

[GT03ROB]

Just thought I'd bump this for the morning crowd.

[AndyTR]

Depending on the overall circumstances you may incur both SDLT when splitting the title and CGT when selling. You'll need some proper tax advice to go through the exact circumstances, what each title contains etc.

[GT03ROB]

AndyTR said:

Depending on the overall circumstances you may incur both SDLT when splitting the title and CGT when selling. You'll need some proper tax advice to go through the exact circumstances, what each title contains etc.

OK, understood regarding getting proper advice.

The SDLT though would not be incurred by the current owner of the property when they split the title however as there is no change of ownership or disposal at that point. SDLT would be incurred by the purchasers of the now 2 properties is that correct?.

[markh1973]

What's the current property - your main residence that would be CGT free on sale?

If you split the title and the ownership of both pieces remains the same at that point then there has been no disposal - this would be the case whether it's your main residence or not.

The main residence point may come into play when you sell the now separated titles. On any sale of the split titles you'd need to determine how the existing base cost splits if CGT were relevant to either title sale.

[GT03ROB]

markh1973 said:

What's the current property - your main residence that would be CGT free on sale?

If you split the title and the ownership of both pieces remains the same at that point then there has been no disposal - this would be the case whether it's your main residence or not.

The main residence point may come into play when you sell the now separated titles. On any sale of the split titles you'd need to determine how the existing base cost splits if CGT were relevant to either title sale.

The property is currently a main residence. The title would be split, the separate titles would then be sold as 2 sales roughly on a 60:40 basis.

[MaxFromage]

The CGT situation many or may not be complicated. It depends on a number of factors such as curtilage. I would advise getting paid advice as a wrong answer/method of calculation could be costly. HMRC routinely review property sales, so any seller must be prepared for questions.