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Posted Wed, 27 Apr 2022 13:59:30 GMT by BrighterLight
Hello Would you be able to help confirm if a Declaration of Trust on a buy to let property that has created a beneficial interest but no change to legal owner is considered a disposal and therefore liable for Capital Gains Tax from the date the trust was entered into? There has been no sale, transfer of money or legal ownership. The parties are not married or related. The wording on the document is as follows: "The Owner declares that he holds the Property and the Net Proceeds of Sale on trust for himself and the Beneficiary as tenants in common in equal shares " If CGT tax is due upon making the deed of trust, how is the CGT worked out when property eventually sold? Parties presumed no CGT due now but when sold the CGT due would be deducted from sale proceeds before being split in equal shares. Thank you
Posted Tue, 03 May 2022 15:27:50 GMT by HMRC Admin 19
Hi,

Please see the following guidance:

Trusts and taxes

Thank you.

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