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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4191
Experience:  FCCA FCMA CGMA ACIS
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As a result of a massive con I was declared bankrupt in 1976

Customer Question

As a result of a massive con I was declared bankrupt in 1976 and was later discharged.
I wanted to buy a house but could not get a mortgage so a house was bought in my daughter's name. This was 1997. I put down the deposit. I have made all mortgage payments. I have paid all repairs and have lived in house for 18 years.
Now I want to sell.
If the house for CGT purposes is my daughters there will be a massive liability.
Can it retrospectively be treated at being held in trust for me?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. You are correct, there will be a massive liability for your daughter on disposal. Did she ever live in the house as hes sole or main domestic residence? Once I know this I can assiat you further.
Customer: replied 2 years ago.

Hello

She did live here briefly but that will not help significantly. What I need to know is whether it can be argued that she held the property in trust for me.

Regards

Keith

Expert:  bigduckontax replied 2 years ago.

I an sorry to have to tell Keith you that if it were in trust then the CGT liability would merely fall on the trust whose Annual Exempt Amount (AEA) (which can be used to offset the gain in CGT) is GBP 5550 whilst an individual's AEA is 11.1K. You are well and truly caught by Benjamin Franklin"s dictum that in life there are but two certainties, death and taxes.

So sorry to have to rain on your parade. The period in which your daughter was in residence plus the last 18 months of ownership will reduce the tax due, but not significantly. Regards Keith