Deed of Trust and CGT

My wife bought a second home in 2011. We are looking to sell and have a deed of trust drawn up to make me a 90% beneficiary to utilise CGT allowances whilst the property will still remain in her sole name. 1. I understand that as it remains legally in her name, then no Form 17 is required and we don’t have to contact HMRC, merely use the appropriate percentages when we report the capital gain. 2. My wife’s gain will be below the CGT allowance of £6000. Does she still need to report to HMRC online within 60 days. Of course I understand I will. 3. I assume the purchase price for both of us is based on the original purchase price rather than any market value estimates? 4. For purchase expenses can we decide the split even though it was in her sole name. I provided some funds even though I didn’t assume any interest at the time. Or are they all assigned to her as the property was bought in her name. 5. For selling expenses, I assume we can agree that I meet them all or do they have to be allocated according to the beneficial percentages. 6. I assume when we report and pay based on expected income, the amount will be corrected if necessary at the end of the tax year in SA form based on actual income.

Hi carrjonp,

1. As still hers, just the declaration of trust is required  
2. If it is a UK residential property, no.
3. Yes the original purchase price
4. No you need to use the split applied under the beneficial interests  
5  As in 4  
6. That is correct

Thank you, 

Thanks for your reply. 1. So no Form 17 is required? Please confirm. Do I just post a copy of the deed of trust to HMRC? 2. It’s a second home. Is this still a residential property which means she doesn’t have to report the gain of below 6k? Thanks for clarifying the others.

Hi
Yes this will be a residential property and if the gain is under £6000 for 23/24 then there is no need to report it.