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Constructive trust arose on disposal of a property to a company

By Mark McLaughlin, October 2024

A constructive trust arose over a property, such that there was a transfer for capital gains tax purposes in the tax year 2015/16, as opposed to the operative transfer being upon the transfer of the legal interest in 2016/17, but protective discovery assessments for 2015/16 were upheld.  

Summary 

A constructive trust arose over a property, such that there was a transfer for capital gains tax (CGT) purposes in the tax year 2015/16, as opposed to the operative transfer being upon the transfer of the legal interest in 2016/17, but protective discovery assessments for 2015/16 were upheld. 

Background 

In 2011, the appellants decided to redevelop their family home. The existing house and garden were given their own title, and the remainder was divided into five plots (plots 1 to 5). Plot 1 was sold to a developer. Houses were subsequently constructed on plots 2 to 5. The

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