CGT on sale of has owned houses

[genou]

It's an interesting parlour game. It must be an absolute bugger for the real people involved.

Yes, they'd have to swap living spaces, but it's the only mechanism I can see offhand to reduce their potential CGT liability

This is at the extremity of "Practical", but it does work. Each brother gives his half of the other's residence to his wife, CGT free. Then both marriages end in amicable divorce. Then each brother marries the other's ex, who promptly donates her share of his residence to him, CGT free.

Repeat amicable divorces. All remarry original spouses. Exeunt Omnes, hopefully with no pursuing bear.

What could possibly go wrong.

[Lootman]

Yes, they'd have to swap living spaces, but it's the only mechanism I can see offhand to reduce their potential CGT liability

This is at the extremity of "Practical", but it does work. Each brother gives his half of the other's residence to his wife, CGT free. Then both marriages end in amicable divorce. Then each brother marries the other's ex, who promptly donates her share of his residence to him, CGT free.

Repeat amicable divorces. All remarry original spouses. Exeunt Omnes, hopefully with no pursuing bear.

What could possibly go wrong.

I was actually thinking something similar, assuming that both sons have wives.

This is an entertaining exercise. There are 101 ideas and finesses that might potentially work. And in practice 100 of them will probably work in practice. And the 101st will end in pain.

So as Dirty Harry famously asked: "Do you feel lucky, punk?"

[Spet0789]

Have read this thread quickly so may be making a mistake somewhere but isn’t the answer obvious? CGT-wise at least, if not for SDLT. I assume each house is worth the same.

Each brother sells the half of the house he lives in to the other. That sale benefits from PPR and attracts no tax. Then each brother ends up owning the other brother’s house. Then they immediately sell to each other. That will incur SDLT but no CGT.

That may be what has already been suggested, but I think I have stated it more simply.

Yes you're making a mistake. See viewtopic.php?p=644037#p644037.

You’re right! I am. I suspect this is like the man who asked for directions only to be told “I wouldn’t start from here.”