My question relates to a property partnership agreement between two brothers. This agreement has been in place for the past 25 years. There are two other brothers in the mix who are not part of the agreement; however, each of the four brothers receives an equal share every year. All taxes have been paid up to date. The property partnership is now to be dissolved and all the six properties that are part of the agreement would be split amongst the four brothers. What would be the best way to dissolve this agreement with the least amount of capital gains tax (CGT) implications? 

Arthur Weller replies:  

It is not clear from the question, but it seems to me that all four brothers together jointly own all six properties. If so, it is possible to split up now using a form of rollover relief, whereby no CGT is paid on the split up, but any CGT is deferred until later. This can be seen in HMRC’s Capital Gains Manual at CG73000 (tinyurl.com/HMRC-cg73000).