Mark McLaughlin looks at beneficial ownership when property is bought by a family member and held on behalf of another family member.
The distinction between legal and beneficial ownership of land and property (in English law) is important. When a dwelling is (say) transferred from one individual to another, the names shown on the conveyance will be the legal owners.
Beneficial ownership
However, they will not necessarily be the beneficial owners. It is beneficial ownership that is normally relevant for capital gains tax (and inheritance tax) purposes.
Identifying the beneficial owner of a property can be difficult, as there are several potential factors. HMRC’s Capital Gains Manual (at CG70230) points out that indicators of beneficial ownership include occupation of the property, the receipt of rent for the property, the payment of funds to buy the
