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Consultants wish to dissolve the co-ownership of eight properties by allocating specific assets to each party and compensating any excess in cash. The DGT rules that the dissolution will only be taxed as documented legal acts if the excess allocations are unavoidable; otherwise, they will also be subject to onerous property transfer tax.
This ruling clarifies that when dissolving joint ownership, any excess value allocated to a party that could have been settled through other means will trigger onerous transfer tax, rather than being treated solely as a documented legal act.
The tax team reviews your specific situation.
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