Tax on Property Life Trust

My brothers and I have just inherited half my parent's house from my dad, who owned it as tenants in common with mum. His will creates a Property Life Trust, and allows mum to live in the house until she dies or wants to move. I have 2 questions: 1) Will the trust be subject to capital gains tax when the house is sold (when mum dies, goes into care, or wants to move elsewhere) 2) Does the trust have to be registered with the government, or is it a schedule 3A trust? Thanks Jopo

Hi

We are unable to review personal matters in this forum.  
For an answer to a personal question of this nature, you would need to contact our self assesment helpline on 0300 200 3310 or contact our webchat facility at Contact HMRC.

Thank you

1. A sale would be a disposal for CGT but you may not have to pay tax - either due to the trustee(s) claiming principal private residence relief (if your mother is still alive at the time it can be claimed by joint notice to HMRC) or using the base cost uplift under s.62(1) TCGA if the sale follows her death. 2. Yes, there is unlikely to be a relevant exemption. Para 22 may apply (trusts for a disabled person) if your mother meets the definition at https://www.legislation.gov.uk/ukpga/2005/7/schedule/1A but the exclusion is ambiguous - it is not clear whether the trust has to be exclusively for a disabled person and the guidance is silent on this point as well. See https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23080 Para 7 will apply for 2 years from the death of your father but then the exclusion will cease and the trust will become registrable (unless para 22 applies).