CGT beneficial ownership of property

With the separate taxation of spouses it is often beneficial for property to be jointly owned by them. For CGT purposes, this may ensure that each is able to make best use of his or her annual CGT exemption currently extending to £10,600 of gains. Where the legal title to a property is registered in both parties’ names the Revenue will doubtless be minded to accept, without demur, that the beneficial interests are also shared equally. However, where the legal title to a property is registered in the name of only one of the parties, it may be able to be shown that the beneficial interest is shared so that both the CGT annual exemptions may be used. This was successfully argued by the taxpayer, in person, before the First-Tier Tribunal in Lawson v HMRC [2011] UKFTT 346 (TC).