Trusts: Capital Gains Tax and Stamp Duty Land Tax
The question
To ask the Chancellor of the Exchequer, what guidance HMRC has produced on the (a) Stamp Duty and (b) Capital Gains Tax liability of selling a stake in a dwelling to a trust.
Answered by Dan Tomlinson
HMRC has published information on Stamp Duty Land Tax (SDLT) here: http://www.gov.uk/stamp-duty-land-tax.
Guidance on the transfer of ownership of land or property in different situations has also been provided: http://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property.
Guidance on the application of SDLT for trusts is available in HMRC’s SDLT Manual at SDLTM31700 onwards, which includes:
· bare trustees purchasing land (including dwellings) at SDLTM31710
· trustees of a settlement purchasing land (including dwellings) at SDLTM31720
HMRC has also published information on Capital Gains Tax, including on the disposal of assets to a trust, which includes selling a stake in a property to a trust. This information can be found here: https://www.gov.uk/trusts-taxes/trusts-and-capital-gains-tax. Further detailed guidance can be found in the Capital Gains Manual: https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual.
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