Hi, has anyone come across the concept of the CGT trust to purchase and sell your investment properties. Apparently, residential property can be placed in the trust and has the effect of mitigating CGT when the property is eventually sold. The landlord is named as Trustee of the CGT trust and also be named as beneficiaries of the trust. An additional beneficiary named within the trust documents will be the tenant that you place in the property. The advantage of this is that as they are living in the property you will be able to claim principal private residence relief (PPR) for the time they reside in the property. Principal Private Residence Relief is a 100% relief for Capital Gains Tax purposes. The additional beneficiary can be changed when the tenant changes. By doing this we can ensure that when the property is eventually sold it can be done so 100% free of CGT. I have never heard of this scheme and was sent the above information by a specialist legal firm to see if I was interested. Any views out there
