transfer title or deed of trust regarding CGT reduction

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    #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).

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      #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?

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