CGT implications

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    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????


    Thanks

    Paul

    #2
    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 http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    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).

    Comment


      #3
      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.

      THanks

      Paul

      Comment

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