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Two individuals owning 50% each of two commercial premises wish to extinguish their joint ownership by each being allocated one property. The DGT rules that, if the allocation respects the ownership shares, there is no capital gain for Income Tax purposes, no transfer for Transfer Tax purposes (except Stamp Duty), and no taxable event for Property Transfer Tax.
This ruling provides legal certainty for co-owners seeking to divide assets proportionally, confirming that such transactions are tax-neutral provided ownership shares are strictly respected.
The tax team reviews your specific situation.
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