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A client owns a long leasehold commercial property which is let to a trade. He wanted to gift a sixth share in the property to each of his two adult children, but did not wish to incur the costs of a conveyance. His solicitor has therefore drawn up a declaration of trust which has been signed by my client and the two children. The terms of the trust are that my client, as legal owner, holds the property and the net proceeds of sale and the net rents and profits until sale upon trust for himself and the two children as tenants in common. I understand that the property is registered.
A client owns a long leasehold commercial property which is let to a trade. He wanted to gift a sixth share in the property to each of his two adult children but did not wish to incur the costs of a conveyance. His solicitor has therefore drawn up a declaration of trust which has been signed by my client and the two children. The terms of the trust are that my client as legal owner holds the property and the net proceeds of sale and the net rents and profits until sale upon trust for himself and the two children as tenants in common. I understand that the property is registered. No option to tax for VAT has ever been made.
I would welcome clarification of the following points.
1. Is this a valid transfer for inheritance tax purposes?
2. Is this a valid gift for capital gains tax purposes?
3. Should...
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