China remarriages surge in divorce tax loophole

Beijing - Twice as many divorced couples are remarrying in China's financial capital Shanghai as did so before fiscal changes made splitting up a way to avoid property taxes, reports showed Friday.

In 2013 China applied a 20% capital gains tax on the profits owners make from selling residential property, as part of efforts to rein in rampant speculation and prices that were soaring at the time.

But the terms let couples with two properties sell them tax-free under certain conditions if they divorced and put each house into one person's name - after which they could get back together.