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Where Taxpayers and Advisers Meet

Implied Trust

janny53
Posts:1
Joined:Tue Sep 19, 2017 4:20 pm
Implied Trust

Postby janny53 » Tue Sep 19, 2017 5:32 pm

My wife and I bought a house for our son to live in when he moved to Bristol in 2005. He was struggling financially and we found a modest 3 bed terraced house costing £100k. We did not put the house in his name as we were unconvinced as to how the relationship with his partner would turn out. We have never received from or asked him for rent. Twelve years and three (wonderful) grandchildren later he needs a larger (4 bed) house. We would like to relinquish ownership of the house in order to assist him and his partner get one.
We did not set up a trust deed at the time but are hoping that in some way the Revenue will allow CGT relief on the £80k gain when the house is sold. I found out about the concept of an "Implied Trust" and wondered if this might be the answer.
We would be extremely grateful for members thoughts and for any advice.

Leslie

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Implied Trust

Postby maths » Fri Sep 22, 2017 8:41 pm

I'm afraid on the facts it seems pretty clear that you/wife own the property but allowed your son to live there. I suspect if his relationship had gone awry and his girlfriend sough to argue she was entitled to half of "his" house you would have been the first to cry, foul, it's "our" house????

So on disposal you/wife face a CGT charge on any gain.


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