CGT form query for inherited property sold with Deed of Appropriation

shiraz99

Why do you mention "4xCGT allowances", I thought it was just you and your 2 siblings? I don't believe a bare trustee is liable for the CGT so not sure if it has to be declared.

Also you may want to check with your solicitor but I'm sure I read somewhere that you're not required to register a trust where you are both trustee and beneficiary.

ljayljay

shiraz99 said:

Why do you mention "4xCGT allowances", I thought it was just you and your 2 siblings? I don't believe a bare trustee is liable for the CGT so not sure if it has to be declared.

Sorry for the confusion, I wasn't referring to the CGT allowances for myself & siblings. I was referring to the rules regarding reporting the property sale to HMRC, since my share of the total value exceeded 4xCGT allowance.

There is more info here -

https://www.gov.uk/capital-gains-tax/work-out-need-to-pay

Specifically, where it states -

If your total gains are less than the tax-free allowance

You do not have to pay tax if your total taxable gains are under your Capital Gains Tax allowance.

You still need to report your gains in your tax return if both of the following apply:

• the total amount you sold the assets for was more than 4 times your allowance
• you’re registered for Self Assessment

I was referred to this requirement in a separate post that I placed on this forum. However, I am still a bit confused as it mentions only if also registered for Self Assessment. Not too sure if that will therefore affect me or not. As it turns out I do not normally do a Self Assessment although I am now required to do one for 21/22 due to a capital gain last year following a combination of two separate gains, house & land with the land sale taking me into capital gains tax territory. I am therefore thinking that I may also need to do one for 22/23 even though my gain this year is within the allowances available. I did have a conversation with HMRC a few months ago who also indicated that this was the case but all a bit confusing.

shiraz99 said:

 I don't believe a bare trustee is liable for the CGT so not sure if it has to be declared.

Also you may want to check with your solicitor but I'm sure I read somewhere that you're not required to register a trust where you are both trustee and beneficiary.

Thanks, as my main interest in this post was about the process for 'Deed of Appropriation' & whether there is a requirement to register. Unfortunately, my solicitor will not commit on this & advised me to check with my non-existent accountant, hence my post here. Think I just need to have a more in depth look at the process sooner rather than later or get an accountant.

Keep_pedalling

As you don’t do SA you don’t need to start now, the 4x rule requires both conditions to be met. If any of your siblings are on SA they will have to.

ljayljay

Keep_pedalling said:

As you don’t do SA you don’t need to start now, the 4x rule requires both conditions to be met. If any of your siblings are on SA they will have to.

Thanks I also now read it that way as well. Think I was given SA advice on another post but they may have assumed I was already on SA. 

itm2

as my main interest in this post was about the process for 'Deed of Appropriation' & whether there is a requirement to register. Unfortunately, my solicitor will not commit on this & advised me to check with my non-existent accountant, hence my post here. Think I just need to have a more in depth look at the process sooner rather than later or get an accountant.

I was wondering whether you'd had any clarification regarding whether you need to register the trust which was created by the Deed of Appropriation? As far as I can tell, such a trust is considered an "express" trust, but it may be excluded by virtue of this exemption (from https://www.gov.uk/guidance/register-a-trust-as-a-trustee#not-register):

• "a trust relating to registration of assets — for example, trusts created to hold the legal title of an asset for the person to whom the transfer or disposal is being made"

ljayljay

itm2 said:

I was wondering whether you'd had any clarification regarding whether you need to register the trust which was created by the Deed of Appropriation? As far as I can tell, such a trust is considered an "express" trust, but it may be excluded by virtue of this exemption (from https://www.gov.uk/guidance/register-a-trust-as-a-trustee#not-register):

• "a trust relating to registration of assets — for example, trusts created to hold the legal title of an asset for the person to whom the transfer or disposal is being made"

To be honest although I feel a little out of my depth I am also coming to the same conclusion. I have done quite a bit of searching around schedule 3A & express trusts that give the exemption both you & Shiraz refer to & therefore does not require registering. I will continue to double check as my 90-day window expires on 12 December.