Ask an expert: SDLT on property exchanges

Question:

My client Mr X jointly owns five commercial investment properties with another unconnected individual Mr Y. The property values total £3.2m. The value of each property is as follows: property A is worth £800 000; property B £800 000; property C £600 000; property D £500 000; and property E £500 000. Mr X and Mr Y wish to terminate the joint ownership and own the properties separately making any required payment in order to equalise the position. My client wishes to retain property A and Mr Y wishes to retain property B but the division is otherwise unimportant. How can this be done so as to minimise SDLT costs?

Answer:

SDLT is prima facie due on any consideration given by one joint owner of land...