CGT Reporting requirements of a UK Express trust

Trusts Discussion
1

Dear Esteemed Members of the TDF Community,

I’m completely out of my depth in relation to trusts and would very much appreciate the advice of those far more knowledgeable than myself. My query might be something very obvious and simple to you all, so I do apologise in advance and kindly ask that you forgive my ignorance on this occasion.

A client registered with the TRS a non-excluded UK express trust arising from a Declaration of Beneficial interest assigning 50% of a property (owned solely by them) to their spouse. The trust has a URN. Fast-forward to today, the residential property of which 50% beneficial interest was transferred to the spouse, has now been sold.

Being completely unfamiliar with the TRS, can someone advise me as to whether a Capital Gains Reporting on UK Property account needs to be created for the trust, or is it simply a case of creating Capital Gains on UK Property accounts for the two individuals and “closing” the trust through the TRS?

Thank you all for your kind assistance!

Regards,
Dan

2

The latter. The TRS doesn’t change the basic tax position that the bare trust is transparent for CGT.

(not a stupid question at all!)

3

Thank you so much for the immediate response, Andrew.

Would you also be able to point me in the direction of specific legislation or HMRC guidance that supports this interpretation as I may need to refer to it in my client notes?

Sincerely,
Dan

Edit: A bit of research led me to HMRC’s HS294

4

s60 TCGA. I don’t think you will find anything specifically addressing UK Property reporting in legislation. It is simply that the beneficiaries are deemed to have made the disposal under s.60 therefore they have the obligation under the 2019 Act to file the return.