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Where Taxpayers and Advisers Meet

Property - Deed of trust

Jholm
Posts:354
Joined:Mon Mar 11, 2019 4:22 pm
Property - Deed of trust

Postby Jholm » Tue Aug 09, 2022 10:58 am

Hi all,

Is there any circumstance where income and capital from a rental property can be assigned to an individual via a declaration of trust WITHOUT this being an event for CGT purposes?

Having a respectful disagreement with a third party.

Thanks,

pawncob
Posts:5089
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Property - Deed of trust

Postby pawncob » Tue Aug 09, 2022 7:35 pm

I can't think of any.
With a pinch of salt take what I say, but don't exceed your RDA

Jholm
Posts:354
Joined:Mon Mar 11, 2019 4:22 pm

Re: Property - Deed of trust

Postby Jholm » Wed Aug 10, 2022 1:14 pm

Thanks PC.

The accountants used by the solicitors who drew up the deed seem to think otherwise, although I have had no reasoning from them to back that up.

It seems it would be too good to be true, a 'have your cate and eat it too' affair.

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

Re: Property - Deed of trust

Postby maths » Wed Aug 10, 2022 10:35 pm

If X owns property and executes a declaration of trust in favour of Y under which X transfers a beneficial interest in the property of say 30% to Y then in principle X has made a disposal for CGT purposes.

If however X and Y are married then there would not be a CGT disposal.

X could transfer an interest in the legal title to Y without any transfer of any beneficial interest. Again no CGT disposal arises.


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