TRS- Tenants in Common - does TRSM23140 exclusion apply

Trusts Discussion
1

Hi

I have 2 TRS queries relating to land please!

Schdule 3A trusts are excluded from registering and HMRC includes as an example " a co-ownership trust set up to hold shares of property or other assets jointly owned by 2 or more people as ‘tenants in common’".

  1. I have a property owned by 8 people as TIC. There can only be 4 trustees holding the property on trust for the 8 beneficiaries therefore the trustees are different from the beneficiaries and I understood this type of trust must be registered with TRS. However, can i apply TRSM23140 to this as it is only possible to name the 4 trustees on the Title and therefore it does not need to be registered? I read TRSM23140 as relevant if there were 5 joint owners (rather than TIC) which are limited to only name 4 of them on the Title, which is not quite the same as this case where all 8 are TIC?

  2. I have a piece of land with 4 original owners as TIC. Two of the four TIC have died so the legal estate passes to the 2 surviving TIC. The beneficial interest of the two deceased TICs pass to various beneficiaries. Again should this be registered on TRS as legal and beneficial owners will differ once transfers are complete? Or can i get around it with any exemptions?

Thanks

2
  1. It could be excluded if the property was transferred into the names of all 8 but then just registered in the names of the first four. Any kind of written declaration of trust would take you out of the exclusion for statutory trusts (at least in the view of HMRC).
  2. I don’t see how you can avoid registration here.