 | BENEFICIAL OWNERSHIP OF AN ASSET | | | | | Where does the liability lie? | Posted by Nigel Adams on 09/01/2012 @ 09:00 |
If you own an asset personally - with your spouse not being involved - it would normally mean that the capital gain on a sale will be taxed on you alone. The key aspect is who is the beneficial owner, rather than whose name is shown on the deeds or certificate of ownership ...
 tax planning is always a bit of a puzzle so let ad valorem show you how
Often it would be the same person, but following a recent tax case there is now scope for showing that perhaps each spouse is the beneficial owner with the result that of the gain is taxed on each of them. That can reduce the overall capital gains tax payable, especially if husband and wife can each use their own annual Capital Gains Tax exemption of £10,600.
The taxpayer in that legal case - the wife - successfully argued that although the mortgage on the property was in her name only, nevertheless her husband shared the mortgage payments with her. It was also held that the evidence clearly showed that the property had been bought in part from joint savings and also from the proceeds of an endowment policy held in the husband's name.
It was therefore accepted by the court that both husband and wife were beneficial owners of the property and the gain was taxed 50:50 between them even though the title deeds only showed the wife as the legal owner. This decision - subject to any successful appeal - provides plenty of flexibility in tax planning.
My team at Ad Valorem has a great deal of knowledge and experience when it comes to tax. We have recently taken on a tax specialist who will be able to advise you both as an individual, a spouse or as a business owner. Give me a call on +44 (0) 1908 219100 if you'd like to find out more.
Until next time ... 
NIGEL ADAMS
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 | MANAGING DIRECTOR Nigel formed Ad Valorem in April 2001 with a commitment to working with companies of all sizes, just the one common goal though the ambition to succeed and make the best of every opportunity that is presented.
Nigels strengths are thinking outside the box and using his practical and down-to-earth approach to help business owners maximise their potential. He will tell you what you need to know but not baffle you with accounting jargon.
Ad Valorem continues to grow and still fosters the family atmosphere with both its team and clients that is core to his business vision.
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