Can a Declaration of Trust get round the loss of letting relief?Make Text Bigger
My parents own a rental property which was their previous residence and has been renting the property for a number of years.
They are in the process of selling the property mainly to make use the letting relief which goes after 5th April. The property was close to exchange which is the tax point for CGT until the dreaded virus has arrived so everything is on hold.
We were contemplating a declaration of trust to transfer the beneficial interest to myself and brother and we could take account of the CGT. The change of legal ownership will take too long and will cause more complications.
Can I add I am in fact already managing the property as my parents cannot manage their properties due to their age.
I think we would need to raise another declaration of trust after 5th April back to my parents so they can sell the property, but that maybe perceived as tax avoidance.
I was hoping HMRC would be sympathetic to our plight since the virus has scuppered our plans.
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