CGT & exemption for home 'owners'


A

Alex

hello all,
sorry if ithas been covered before- home owners can be relieved from
having to pay capital gains tax on disposing of their own property.
What is the situation, if a person isn't the legal owner, but the home
was bought on their behalf for them to live in, even with their money,
and they did live there as their only home & would otherwise qualify?
So their name is not on the deeds, although it was always intended as
held in trust.
Further questions: If there is CGT liability could it be reduced eg.
by transferring the property to the intended owner in carefully chosen
fractions over a number of years, to take advantage of yearly
allowances and possibly lower rates?
would a 'beneficial' owner ( a beneficiary of a trust but not the
legal owner) qualify for the relief in the same way as a legal owner?
comments much appreciated!
 
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R

Ronald Raygun

Alex said:
What is the situation, if a person isn't the legal owner, but the home
was bought on their behalf for them to live in, even with their money,
and they did live there as their only home & would otherwise qualify?
So their name is not on the deeds, although it was always intended as
held in trust.
In principle it makes no difference who the legal owner is.
Beneficial ownership is the deciding factor, and provided there is
adequate evidence to support who that is, there should be no problem.

Clearly if the sale proceeds were to find their way into the pockets
of the paper owner, that would be a Bad Thing. Also, since you say
the money originally used to buy the property really belonged to
the beneficial owner (and there is evidence of this, despite the
paper owner being a different person), that would be a Good Thing.
 

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