Beijing couples split to avoid tax

Beijing's divorce rate has soared as couples seek to avoid a property tax imposed earlier this year by using a loophole for those whose marriages end, state media reported.

Nearly 40,000 couples divorced in the Chinese capital in the first nine months of this year, up 41 per cent on the same period last year, AFP reported quoting the Beijing Youth Daily.

In March, China introduced a nationwide capital gains tax of 20 per cent on the profits owners make from selling residential property. But the terms allow couples with two properties who divorce and put each house into one person's name to then sell them tax-free under certain conditions - after which they can remarry.

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