Declaration of Trust, Private Property Sale and Capital Gains Tax

Please can you provide guidance around a Declaration of Trust for the sale of a private property that will have a capital gains tax liability. I have owned a property, solely in my name at the land registry, for a number of years so I am the sole legal owner. It has not been my principal private residence for a period of the time I have owned it and its value has risen so I know there is a capital gains tax liability. Since I bought the property I have married and we are now looking to sell the property. I am a basic rate tax payer, and have a modest personal pension, and my wife has no income that is taxable. I have taken advise from a tax consultant who is proposing a Declaration of Trust to record the beneficial interest for each of us to make most efficient use of our tax allowances. My understanding being that the recorded share for each of us will reflect the calculation that makes best use of those allowances. The solicitor, who is handling the sale of the property, can prepare the Declaration of Trust but is questioning whether it needs to be registered with the Trust Registration Service. Please can you confirm that the approach being proposed by the tax consultant is legal from a tax assessment and liability perspective but also clarify if the Declaration of Trust needs to be registered. The tax consultant is indicating no stating it is a schedule 3A Trust on the basis that it will hold no assets and receive no income post disposal so effectively ceases to exist as the beneficiaries will have received the assets on the completion of the property sale. Obviously this all needs to be confirmed before any of the legal aspects of the sale complete as it cannot be applied retrospectively. Thank you

Hi Matt Reece,
The declaration of trust must be sent to HMRC prior to the sale of fthe property.
It doesn't need to be registered under the Trust registration as it is not actual trust income.
The declaration must be signed by both parties and witnessed.
It should confirm the address of the property and the beneficial split.
Thank you. 

Thank you for the information. Please can you confirm the timing of sending the Declaration of Trust. Does it have to be sent before contracts are exchanged or is it sufficient to submit it after this as long as it is before the completion date? What constitutes the date that the sale of property has taken place from an HMRC perspective? Thank you

Hi Matt Reece,
The date used in the disposal of property for capital gains purposes, is the completion date.
The declaration of trust would need to be in HMRC possession before that date.
Thank you.