Capital gains tax on trust property

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My wife's mum died in 2016 and all her assets went into a will trust. My mother in law's bungalow was then sold and the proceeds shared out equally between my wife and her two brothers. There was a gain on the property either from what it originally cost or the inheritance tax valuation. The accountants, acting for the trust, have calculated the gain and applied one CGT exemption against the gain. When the gain is then shown on my wife's and her brother's tax returns should my wife and each of her brothers apply their own CGT exemption against the gain and claim the CGT back. I have written to these accountants and they've been totally awkward at letting me have the full facts and figures. My wife isn't a tax payer and is disabled and cannot afford their fees to deal with this matter, they've quoted £744 per each annual year's return. The CGT paid was £1,533 which is £511 each.

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By Wanderer
13th May 2023 16:17

Richard Cliff wrote:

The accountants, acting for the trust, have calculated the gain and applied one CGT exemption against the gain. When the gain is then shown on my wife's and her brother's tax returns should my wife and each of her brothers apply their own CGT exemption against the gain and claim the CGT back.

Looks like someone has misunderstood how CGT works. Why do you think this should be shown on the Trust return then also on your wife & her brothers' returns?
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Replying to Wanderer:
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By Richard Cliff
13th May 2023 17:07

Wanderer wrote:

Richard Cliff wrote:

The accountants, acting for the trust, have calculated the gain and applied one CGT exemption against the gain. When the gain is then shown on my wife's and her brother's tax returns should my wife and each of her brothers apply their own CGT exemption against the gain and claim the CGT back.

Looks like someone has misunderstood how CGT works. Why do you think this should be shown on the Trust return then also on your wife & her brothers' returns?

Because the sale proceeds less costs of sale were paid out to all three of them. The property rentals less tax deducted are paid out to all three of them. My wife and one of her brothers are non tax payers so they get the tax refunded to them on their tax returns. I just assumed with CGT it was the same.
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Replying to Richard Cliff:
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By Richard Cliff
13th May 2023 17:08

I have never dealt with CGT on trust returns before.

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Replying to Richard Cliff:
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By Richard Cliff
13th May 2023 17:22

I have just read up on it and got the answer. I was panicking because are going on holiday on Monday and have had issues to deal with on my wife's disabilities with the flight company.

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By bernard michael
16th May 2023 09:53

I have a similar situation with Income Tax & CGT derived from shares held by the Trust and have asked HMRC for a ruling on what they want done to rectify it or whether they will accept the status quo. Needless to say I've not had an answer after 5 months
The will trust in my case was only registered 6 months ago

What advice did you find ??

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