I know this question has probably been asked before but can you good people help me win an arguement with the family's solicitors (or put me right).
In 1999 the mother and her then husband bought their council house under right to buy. The funds came from the son and the solicitor drew up a declaration of trust in favour of the son, and giving mother and her husband right to occupy.
Some years later mum and husband divorced, mum left the property and remarried (she's still alive). Her ex husband remained in the property for several years alone until his recent death. The solicitor is now in the process of transferring "ownership" to the son who intends to sell.
The question is at what point(s) does a charge to CGT arise and on who.....
Replies (8)
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Accountant A is more than a little anonymous.....
You can see my entire history on here, which is what I meant.
Sadly, the Anonymous option is being abused.
" The funds came from the son and the solicitor drew up a declaration of trust in favour of the son, and giving mother and her husband right to occupy."
The answer is in your question. Son has had beneficial ownership since 1999 so he is liable to CGT
TCGA s226[occupation by a dependent relative] cannot apply as son acquired the property after 6th April 1988.
The son is liable to CGT on the entire gain,; the parents' rights to occupy are irrelevant.
Another vote for the son (when he sells), but I think it's pursuant to the operation of s73(1)(b) of TCGA on the death of the husband.