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A married couple under a separation of assets regime wishes to dissolve their co-ownership of two properties by allocating the higher-value property to the wife. The DGT indicates that if the allocation exceeds a co-owner's ownership share, it constitutes a change in assets that triggers a capital gain or loss.
This ruling clarifies that property division in co-ownership is not tax-neutral if the distribution of assets is disproportionate to the original ownership shares, potentially leading to unexpected tax liabilities.
The tax team reviews your specific situation.
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