transfer title or deed of trust regarding CGT reduction

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    #16
    Originally posted by Gordon999 View Post

    But it seems a single name in the property title + DOT is not enough to satisfy HMRC under " their rules ".

    HMRC want to see both spouses names registered on the property title before they accept a DOT to vary the distribution of rental profit. .
    There is no such law or rule in general (for example with a DoT giving beneficial ownership to my child).

    Indeed such a rule would make no sense since one can have only four trustees, but many more owners than that. The ruling relates to ownership (which the DoT is). What is the case is that if both spouses are names on the trust deed (as legal owners) and this is as joint tenants (not tenants in common) then there can be no variation in distribution because this is 100% shared ownership by definition and has to be declared as 50:50.

    Beneficial interest **is** ownership. Being on the title is not. A trustee is not an owner (necessarily).

    Comment


      #17
      There are a number of different types of trust.

      One that owns property usually has to be formally recorded with HMRC as a separate entity and has to submit its own tax return annually.
      A simple trust to change the beneficial ownership is a different type of trust, which simply requires a one-off formal notification to HMRC.

      I don't know enough about trusts to pretend to know much more than that, but the rules and procedures are obviously different in different cases.

      I have to say that I was always of the belief that joint ownership was necessary for a change of beneficial ownership split, but that could be one of those self-perpetuating bits of "knowledge", which is only "true" until someone points out its wrong.
      Certainly it's how most people who have asked the question seem to have been told by their solicitors.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #18
        So is it possible to use a dot to transfer beneficial ownership to ones spouse who is not named on the legal title? I was under the impression that this couldn't be done. Would the mortgage company not block such a thing?

        Comment

        Latest Activity

        Collapse

        • HMRC - Web Filing of Accounts
          crossannie101
          I have two properties with an income of £9,000. HMRC does not allow web filing accounts if income is over £5,250+. The options seem to be a) buy and use software acceptable to HMRC or b) use an accountant who has such software and charges £250 + VAT pa. As I file accounts directly with HMRC for...
          14-07-2019, 18:06 PM
        • Reply to HMRC - Web Filing of Accounts
          JK0
          I bet accountant will be able to identify £250 of savings, and his bill is tax deductible also. Thirdly, any mistake found years ahead will be on his head rather than yours. Go with the accountant IIWY.
          16-07-2019, 07:52 AM
        • Reply to HMRC - Web Filing of Accounts
          Gordon999
          If you use a separate bank account to receive the monthly rental payments and pay the expenses by cheque, your bank account statements will serve as your bookkeeping records.

          For rental income of around £9K total , you can probably submit a paper tax return SA 200 . This form requires...
          16-07-2019, 07:39 AM
        • Reply to HMRC - Web Filing of Accounts
          crossannie101
          Hi Gordon,

          The income is too low to be registered for VAT. HMRC have a list of software but when I looked a year or so ago, it was quite expensive. I wondered if others had a similar situation and what they did.
          15-07-2019, 21:07 PM
        • Reply to HMRC - Web Filing of Accounts
          Gordon999
          Have you asked HMRC about what software to use for online returns?

          I thought the online return was required for quarterly VAT returns ?...
          14-07-2019, 22:47 PM
        • Sale of (let) residential property: is HMRC notification required?
          MdeB
          I have just sold a residential property I have been letting.
          There is a capital loss on the disposal.

          I have a vague recollection that such disposals need to be notified to HMRC within 30 days of completion, but a search has not come up with anything other than "it will become...
          12-07-2019, 23:51 PM
        • Reply to Sale of (let) residential property: is HMRC notification required?
          jpkeates
          The problem is that HMRC can't currently properly cope with any kind of "interim" tax return (non-UK residents don't have annual tax returns, pretty much by definition).
          The best they can do is adjust a tax code or interim payment if you advise them something has changed dramatically....
          13-07-2019, 10:47 AM
        • Is there a maximum you can put against tax
          randal_bond
          Good evening.

          We have done our tax return for last year, and the system highlighted our tax returns as too high. We still pay roughly £1000 in tax after deductions. All work was necessary, replacing two leaking showers in two flats was an expensive job because it also included retiling...
          08-07-2019, 17:29 PM
        • Reply to Is there a maximum you can put against tax
          MdeB
          Probably not.

          Phone your tax office (not the general help line; number should be on your tax return), explain the situation (you have expenses not included on return because you were not aware they are deductable) and what you can do about it.

          Also ask about correcting previous...
          13-07-2019, 09:50 AM
        • Reply to Sale of (let) residential property: is HMRC notification required?
          MdeB
          I have just called the Capital Gains help line and they advised that (currently) it is only non-UK residents that have the 30-day rule for notification of disposal. UK residents use end of year tax return.

          Thank you both for your time and advice.
          13-07-2019, 09:39 AM
        Working...
        X