We would like to split our property portfolio of 30 properties in Lancashire equally, so neither of us has a gain over the other, and then go our separate ways. All properties have mortgages on them and many are coming to the end of their term. So, will we have to remortgage separately? What is the most tax-efficient way of doing this? 

Arthur Weller replies:  

If you look at HMRC’s internal Capital Gains manual at CG73000, you can see that you can do the separation you are looking for, and make a claim, so that there will be no capital gains tax to pay now. I assume that none of the 30 properties is the main residence of either of you, and will not be so for the next six years. For stamp duty land tax (SDLT) purposes, see HMRC’s Stamp Duty Land Tax manual at SDLTM04030a, which indicates that a separation can be done without incurring SDLT. However, the mortgages may pose a problem, and you would need to speak to a tax adviser about this point.