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Where Taxpayers and Advisers Meet

CGT on sale of property

Hughwalker01
Posts: 2
Joined: Fri Mar 30, 2018 11:16 am

CGT on sale of property

Postby Hughwalker01 » Fri Mar 30, 2018 11:38 am

Hopefully someone can shed light!
My uncle bought a property but put it exclusively in my name.He would now like to sell .He is a non uk resident. Who is liable for the CGT ,him or I ?

maths
Posts: 7593
Joined: Wed Aug 06, 2008 3:25 pm

Re: CGT on sale of property

Postby maths » Sat Mar 31, 2018 12:20 am

On purchase either the beneficial interest in the property resided with you or your uncle.

If the former any CGT charge will be yours; if the latter, it would be your uncle's.

He should know what he intended on purchase.

Hughwalker01
Posts: 2
Joined: Fri Mar 30, 2018 11:16 am

Re: CGT on sale of property

Postby Hughwalker01 » Mon Apr 02, 2018 2:57 pm

Thanks for the quick feedback.Does your advice still stand even if the only evidence I have of him being the beneficiary is the source of funds coming via his conveyancer from his bank ,i.e there was no DoT stating apportionment of vested interest just explicit trust between family.

maths
Posts: 7593
Joined: Wed Aug 06, 2008 3:25 pm

Re: CGT on sale of property

Postby maths » Mon Apr 02, 2018 7:09 pm

If your uncle provided 100% of the funds and has enjoyed all fruits of ownership (eg rental income if any; living in it etc) whilst you have had noting to do with the property it is very strongly arguable that you hold the property on a resulting trust for him. If so any CGT charge is his.

There is no presumption of advancement.

wamstax
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Joined: Wed Aug 06, 2008 3:39 pm
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Re: CGT on sale of property

Postby wamstax » Mon Apr 02, 2018 8:49 pm

Sorry to put a spanner in the works.

If HMRC become/became aware of your selling or letting the property then how might it look without the necessary legal paperwork to back up your story that it was your uncles property.

Worst scenario might think it was your funds -and possibly even tax evaded funds - that financed the purchase etc etc
regards and hope this helps
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