CGT implications

  • Filter
  • Time
  • Show
Clear All
new posts

    CGT implications

    Hi all

    Its my first post on this forum so hello all- some exellent comments on here.

    My questions is as follows

    My elderly uncle owns a property outright. I gave him the cash for him under the council right to buy to purchase the property in his name. The deeds are in his name. I had a tax/probate solicitor draught up a deed of trust to protect my investment. THe property is in his name.

    Now the 3 yr period under the right to buy terms have expired i am looking to transfer the property into my sole name. The trust document i created allows for this transfer to take place at my request.

    As i provided the cash to ourchase intially no monies are changing hands as part of the transfer of equity.

    I understand the transfer is a PET for iht purposes but my uncles estate is well below the iht threshold so there are no probs there. My queries/concern relate to CGT.

    The house was his main/only residence so i assume there will be no CGT liability for him transferring the property in my name. In addition i assume there is no "IMMEDIATE" CGT issue for me as part of the transfer. I know there will be a CGT laibility if i sell in the future but i'll take advice on that further down the road.

    Any ideas you tax wizards????



    I'm no tax expert but, as the funds were yours all along, I cannot see that your uncle has any beneficial interest at all. He is apparently a bare trustee, so any transfer to you simply vests legal ownership in you as the true (equitable) owner and could never be taxable- not even potentially under IHT, nor under CGT?
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).


      Thanks Jeffrey

      My tax solicitor was also good enough to e mail me today confirming what you said. She agreed there are no iht/cgt implications as part of the trnasfer.




      Latest Activity


      • Reply to SDLT relief for multiple dwellings
        by DoricPixie
        It’s not 3% but an additional 3% on top of the SDLT you’d pay if you didn’t already own another residential dwelling.

        I see you’ve found someone who can help you. You are correct that there are a number of solicitors who don’t understand the SDLT rules for the higher rate of...
        14-08-2022, 00:02 AM
      • SDLT relief for multiple dwellings
        by BIGGYBIBIG
        Hello everyone,
        I have had an offer accepted on a property purchase, subject to a surveyors report of £395,000 in England.

        I am currently looking at surveyors but i just wanted to know where i stand in terms of stamp duty, costs etc.

        I have phoned 5 different solicitors
        10-08-2022, 19:20 PM
      • Reply to SDLT relief for multiple dwellings
        by BIGGYBIBIG
        Well after emailing and chatting to around 20 solicitors and accountants i finally found someone who specializes in these matters.

        Took a lot of time and effort but instead of over £21,000+ its actually £9,250 which is a saving of £12k, phew just shows you that many solicitors have little...
        13-08-2022, 18:25 PM
      • Sunday Times Report 7 Aug 2022 ( on Welsh holiday lets.)
        by Gordon999
        This report was about a retired solicitor living in Cardiff , with 2 holiday lets in Solva , Pembrokeshire. His properties only let for around 18 weeks a year but Welsh Government require 26 weeks letting to qualify for business rates. The increase in council tax to treble rate compared to rate...
        13-08-2022, 17:22 PM
      • Reply to Giving/Gifting House to Kids
        by gnvqsos

        Did the labouring job jeopardise his position at Royal Mail? lt is strange no contingency fund was taken on holiday.. I don't think it makes sense to purchase, and insure/maintain a camper van to save on 7 days accommodation.The typical cost including depreciation exceeds...
        13-08-2022, 14:54 PM
      • Giving/Gifting House to Kids
        by Tony-Edwards
        Elderly parents in early 80s, one in not so good health.

        Lived in the same home (no mortgage etc) for 50+ years - now worth approx £180,000 - £200,000 and they have minimal savings.

        Looking ahead, if one has to go into care (or council provided home care) I understand there...
        11-08-2022, 11:12 AM
      • Expense Categories
        by philrosenberg
        I'm just in the process of buying my first property as a Ltd company and I have gotten FreeAgent accounting software free with my bank account.

        I have a list of categories to assign to my expenses, but they aren't all that relevant to residential property businesses. I wondered if others...
        13-08-2022, 10:53 AM
      • Reply to Expense Categories
        by theartfullodger
        The old saw was that you had 3 sets of accounts....
        ​​​​​​- one for yourself
        - 2nd for tax man
        - 3rd for wife/husband/partner
        How does your chosen software handle this?...
        13-08-2022, 12:14 PM
      • Higher rate LTT or not?
        by AddictedMonster
        Hi my partner and I are looking to sell one of our rentals and our residential property and buy a larger property.

        I'm confused whether we will be charged the higher rate land transaction tax due to owning a third property that we own that will not be sold as of yet. It was our previous...
        13-08-2022, 11:26 AM
      • Reply to Higher rate LTT or not?
        by AddictedMonster
        Thank you very much. I appreciate the information.
        13-08-2022, 12:04 PM