Declaration of Trust - Husband and Wife

I have been asked to draft a DoT for income tax purposes gifting a share of a jointly owned property from H to W so that W then owns 99% and H 1%. I cannot recall, but is there a reason why it cannot be such a gift to mean 100% to W and nothing for husband.

Lee Hibell
Paul Robinson Solicitors LLP

This suggests the idea is to shift the value without adjusting the income share - ie the value is in the wife’s estate, but the income is shared 50:50 until they elect otherwise.
If the intention was to shift both income and value to W, then a 100% ownership would be fine.

David Hartles
Shipleys LLP

They will be electing with HMRC to have a 1/99 in income split but as far as I can see, there is no reason why they cannot have a 0/100% split. Thank you

Lee Hibell
Paul Robinson Solicitors LLP

I believe that if the property was once occupied by them you need to keep the 1/99 split to ensure they both continue to benefit from the main residence exemption to CGT for their period of occupation.

michelle collins
Cozens Hardy LLP

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