CGT on house in trust?

by **seeksystems@btintern** on Sun Mar 04, 2007 9:21 am

If my wife and I put our house in trust for our children are we then liable for CGT if after a period of time we sell the house to buy a different property?

by **Peter D** on Sun Mar 04, 2007 9:28 am

If this idea is to help reduce IHT then it is not the best way. If you email me I'll send you an article I wrote recently that explain a well tried and tested method for IHT efficiency. email Peter@3DAssociates.co.uk Regards Peter

by **mark** on Sun Mar 04, 2007 12:33 pm

Peter

The Forum is for everyone's benefit. We would be interested in featuring your article on TaxationWeb.

Failing that, could you please at least give some indication of what your method involves, as that is the basic ethos of the Forum.

Many thanks

Mark McLaughlin
General Editor, TaxationWeb

by **Peter D** on Sun Mar 04, 2007 1:10 pm

Good evening Mark,

I have offered the article on several occasions, some after an explanation of the fundamentals of the artical which are the well established NRB DT's with Promissory Notes ( IOU's ) and the the arcticle give working examples and how that works in practice. The article is 3 A4 pages so not best suited for the forum buy you are welcome to read it if you so wish. What address shall I send it to. Regards Peter

by **Lee Young** on Mon Mar 05, 2007 8:09 am

To answer the original question, the CGT bill will belong to the children, not you. But again, the property will be theirs to sell, not yours.

by **maths** on Mon Mar 05, 2007 8:47 am

Lee, is it not the case that post 6.4.06 any CGT liability of the trust will actually be that of the settlor, ie the father/mother, assuming the children are minors; ie not that of the children.

Even if children not minors important that mother/father cannot derive any benefit from trust (eg still living in it)as again CGT will fall on mother/father.

by **Lee Young** on Mon Mar 05, 2007 8:58 am

Maths is absolutely correct - when I read the original post I seemed to have overlooked the key phrase "on trust". My apologies.

Key here therefore is perhaps the age of the children and whether mum and dad want to carry on living in the property after the gift.