CGT on Split property with one Title

mma6

Hello, me and my friend bought a house already split in two separate flats, ground and first floor. However it's all under one title and we jointly own the title. For purposes of the council tax we each pay a separate council tax, even the utility bills are separate. Each of us is living in our own flat.
We would like to sell our flats separately by granting leases however we are concerned we would be liable for CGT because we are splitting a title. We believe we should qualify for Private Residence Relief as we each own one flat, however when we bought it the two flats are under one title which we didn't bother splitting at the time.
Any insight will be appreciated.

G_M

Whether this is considered 1 unit (as per the single Title) or 2 units (as per the council tax etc), I don't see an issue: you have both been living there as your main residence, so CGT should not be relevant.

But clearly the Title needs to reflect the reality, which is that it is 2 properties.

See a solicitor and create 2 long leases. Register these with 1 of you owning each.

I'd suggest either joit ownership of the freehold, or create a company to own the freehold, with the lease-owner for the time being being a company shareholder - but discuss this with the solicitor who creates the leases.

You can then each sell your lease as/when you wish.

mma6

Thank you G-M, can I issue long leases with nil consideration as I don't want to pay stamp duty again.

G_M

Not sure but you could always make it £1.

solicitor will advise