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Where Taxpayers and Advisers Meet

PPR and Letting Exeption on Prpoperty Held in Trust?

CDavey9501@aol.com
Posts:513
Joined:Wed Aug 06, 2008 3:13 pm

Postby CDavey9501@aol.com » Sat Oct 02, 2004 4:53 am

I took up my father's right to buy in our council home some years ago. Although my name was on the purchase deeds and mortgage we had a trust deed written up to recognise our beneficial interests in property as follows:-

1. Dad 40%
2. Sister 30%
3. Me 30%

The deed confirmed our intentions to live in property and jointly make mortgage payments etc. I would act as trustee and "...hold property in trust to sell the same with power to postpone the sale thereof..." with power to postpone sale if sold hold net proceeds in trust for

Dad died some years ago and me and sister moved out of property very recently. The property has recently been let out.

We now want to sell the property and were wondering if we will be taxed as a trust or individually for our share of the gain and if we can claim ppr exemption and letting relief?

I understand that some trusts can be ignored and the beneficiaries would be taxed as if the trust never existed.

CDavey9501@aol.com
Posts:513
Joined:Wed Aug 06, 2008 3:13 pm

Postby CDavey9501@aol.com » Sat Oct 02, 2004 4:58 am

Sorry re-posting question as it contained an error:-


I took up my father's right to buy in our council home some years ago. Although my name was on the purchase deeds and mortgage we had a trust deed written up to recognise our beneficial interests in property as follows:-

1. Dad 40%
2. Sister 30%
3. Me 30%

The deed confirmed our intentions to live in property and jointly make mortgage payments etc. I would act as trustee and "...hold property in trust to sell the same with power to postpone the sale thereof..."

Dad died some years ago and me and sister moved out of property very recently. The property has recently been let out.

We now want to sell the property and were wondering if we will be taxed as a trust or individually for our share of the gain and if we can claim ppr exemption and letting relief?

I understand that some trusts can be ignored and the beneficiaries would be taxed as if the trust never existed.

cranleys
Posts:567
Joined:Wed Aug 06, 2008 3:13 pm
Location:Basingstoke
Contact:

Postby cranleys » Mon Oct 04, 2004 2:47 pm

CD

A trust will not be able to obtain PPR and there are quite complex CGT issues - trust and CGT!

Part is covered by my book and part will need to have separate advice written for you.


Colin Davison
Editor for Property Tax Secrets

Cranleys Chartered Accountants
31 Goose Green HOOK
Hampshire RG27 9QY

Interested in Property Tax?
Read Property Tax Secrets

colin@cranleys.co.uk
01256-766655

CDavey9501@aol.com
Posts:513
Joined:Wed Aug 06, 2008 3:13 pm

Postby CDavey9501@aol.com » Tue Oct 05, 2004 2:29 am

Thanks,

But one last thing. Is this not a bare trust? and if so is it not the beneficiaries who pay the tax based on their circumstances? Indeed am I hung up on the whole notion "trusts" and tax on trusts just because the deed mentions the words "Trust Deed".


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