I have a client who is married and brought a property (sole owner) in 1985 as their main residence. In 2010 brought another propertty which then became their main residence.
From 2010 to date the first property was being occupied by their Grandson rent free. They now wish to sell the property to their grandson in a few months time. The client wishes to transfer 50% of this property to his wife to make use of the Capital Gains Allowance and the tax bands.
What would be better a declaration of trust or transfer the legal ownership ? Could HMRC argue that the primary motive for the transfer was to avoid tax ?