Can I also please check this point, seems to be a similar issue although different facts.
H & W divorced in 1999, they shared 3 propeties owned as joint-tenants which were rented out. The W took over rental business of 2 properties and H took over rental business for another. They verbally agreed that (there was no written financial agreement), that her share of their joint assets when married is the 2 properties and his is the 3rd property. I understand that there were very small amount of mortgage on these properties which were paid of by H & W individially around mid-2000s.
They did not formalise in writing a deed of trust in 1999 - it was just verbal.
In 2010, restriction A was filed. They were barely talking to each other and things were quite strained, so things happened when ever they were in the mood to deal with their joint matters.
Now in 2020, they have agreed to formally pass the titles on to each other.
Property 1 was worth £200k in 1999
Property 2 was worth £300k in 1999
Property 3 was worth £500k in 1999.
So they divide the value of assets equally in 1999.
These properties are now worth :
Property 1 - £800k
Property 2 - £700k
Property 3 - £1.4M
Therefore if they were to change the ownership at Land registry to individual names then the W in today’s value makes a Capital gain of £100k.
My queries are: Can a ratified deed of trust be put in place indicating the intent of the parties in 1999 whilst they were still married and transfers in the year of divorce can still be done on no-gain/no loss basis?
Or they will need to in absence of any paperwork file CGT returns at today’s market value and pay the CGT?