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Tax treatment of UK land sale for Portuguese resident.
An English father gifts his daughter a percentage of agricultural land through a bare trust of which he is a beneficiary. Four months later it is sold with planning permission for building development with a substantial capital gain.
The daughter has been a Portuguese tax resident for three years. What is her situation regarding paying tax on the land?
I look forward to receiving Taxation readers’ assistance on this matter.
Query 19 028 – Madeira.
Reply by Terry ‘Lacuna’ Jordan BKL Tax
The English father has apparently made an outright gift to his daughter of part of a holding of agricultural land by means of a declaration of bare trust setting out the proportion passing to her and that retained by him. On the face of it a written document would have been required to satisfy the requirements of the Law of Property Act 1925.
The father’s gift...
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