My uncle bought a property for his daughter to live in while she was at university. She lived there for roughly 10 years but then moved back home at the start of the pandemic. As she no longer needed the property, my uncle decided to rent it out.
He is now thinking about selling it as being a landlord isn't for him. However, he will be paying quite a hefty amount in capital gains tax (even after offsetting the costs incurred by having a tenant).
Are there any legal ways to reduce it? He obviously wants to pay what's legally due, but the government sometimes has legal avenues for legitimately reducing taxing.
He's spoken to an tax expert who advised to set up a trust deed in the name of his son and daughter so they have beneficial ownership. Then when the property is sold they can use their personal allowance to reduce the tax.
Is this legal? I've searched around but not really found a lot that confirms it. From my rudimentary understanding of what I've read online, if he set up a trust deed now, wouldn't he have to transfer the property into the trust and so trigger the CGT at that stage.
I just want to make sure my uncle isn't being taken advantage of with advice that will come back to bite him later on!
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