Ken Moody looks at the capital gains tax relief for exchanges of interests in jointly-held properties.
I sometimes find myself scratching my head over the capital gains tax (CGT) relief for exchanges of interests in jointly held properties, which is not for the faint-hearted; patience and a careful analysis of the legislation are key.
The relevant legislation (TCGA 1992, s 248A) provides for a form of roll-over relief where the joint owners of two or more properties exchange interests so that each owns 100% of one or more of the properties. See HMRC’s Capital Gains manual at CG73000 for examples, although in practice I find the legislation easier to work through (just!)
The calculation of the relief is given by section 248B, which provides for two situations.
(1) If the consideration received for the disposal of the relinquished interest is equal to or less than the consideration given for the