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Transfer of beneficial ownership of a joint property arose in the tax year a married couple separated

By Mark McLaughlin, December 2023

A transfer of beneficial interest in a joint property arose in the tax year a married couple separated, such that the transfer was on a no gain, no loss basis for CGT purposes, and a constructive trust arose until eventual sale of the property. 

Summary 

A transfer of beneficial interest in a joint property arose in the tax year a married couple separated, such that the transfer was on a no gain, no loss basis for capital gains tax (CGT) purposes under TCGA 1992, s 58, and a constructive trust arose until eventual sale of the property. 

Background 

A couple (Mr C and the appellant) married in 2012. They had purchased a property (R) in May 2009 with a deposit from them. The title of R was in the appellant’s sole name because it was her salary that allowed the mortgage to be obtained. In or around April/May 2015, the couple viewed another property (T). T was purchased jointly

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