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A taxpayer sold their principal residence and intends to use the proceeds to purchase the ownership shares of other family members in an inherited property to achieve 100% ownership. The DGT indicates that this is permissible, provided that the requirements for principal residence and the reinvestment timeframes are met.
This ruling clarifies that the reinvestment relief for capital gains can be applied to the acquisition of undivided shares in a property, allowing taxpayers to consolidate full ownership of a residence using funds from the sale of a previous principal residence.
The tax team reviews your specific situation.
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