Trust Deed

[NFC]

I have owned a property for about 12 years. If I set up a trust deed 100% in the wife’s name so that we can use her GCT allowance (my GCT allowance is use up for this year) prior to the sale of the property, will we still be able to claim renovation costs and taper relief etc earned over the years it was owned?

TIA

[NFC]

Darn, I think I’ve come across the answer. The wife will be treated as owning the property from day one, so all the relief’s will still apply. I would be very grateful if one of the pro’s could verify this please. I might sleep a bit better.

Thanks

[Tax Accountant]

Darn, I think I’ve come across the answer. The wife will be treated as owning the property from day one, so all the relief’s will still apply. I would be very grateful if one of the pro’s could verify this please. I might sleep a bit better.

Thanks

See HMR&C Help Sheet IR281 which confirms that this is the case.

I assume that the house was never the only or main residence of either of you since it was purchased by you.

I also assume that neither of you have any CGT losses available from previous years.

So you want to transfer 100% to your wife to use up her CGT annual allowance, currently £8,800. But make sure that you also check the rates at which any excess gains will be charged and to ensure that the overall CGT on the gains is no more than the CGT if the property remained in your name or in joint names.

Ramnik