CGT on property held in trust

Council RTB in to trust on purchase in 1981. Capital Gains Tax on Trust / ability to reclaim?

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Property purchased by my client & daughter as council RTB in 1981 and held as tenants in common. 50/50. Clients advised on placing the property in trust?

Property placed into Trust in 1982. The property still in trust but lived in by the client to 2015 client now in residential care.

The trust directs that on sale (which has to be sold) then 50% returned to my client and 50% goes to son (not daughter)

Property needs to be sold to fund care costs (Care Home of Choice)

I understand that as the property is in trust, then CGT may apply at trust rates?

If the CGT is down to the trustees is it possible for the trustees claim any relief as client (Father) lived in the property 1980 - 2015 principle residence.

Will the daughter be caught for any CGT, she did not live in the property and she has no beneficial interest in sale proceeds.

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By Portia Nina Levin
21st Nov 2016 17:49

1) That is correct. It depends on the type of trust.
2) Yes, if the father is a beneficiary/life tenant.
3) Probably not, but my usual practice is to charge a small fortune for reading the trust documentation before committing myself to an answer that might result in a PII claim.

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By Paul Duffill
21st Nov 2016 19:33

Portia, thank you for taking time out to reply to my question.

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