My client's father passed away and left an inheritance to her two children. Our client then used this money to purchase a property, adding a small amount herself but mainly for her children who are younger than 18. No legal document or trust was set up at the time. All rents received have been declared on our client’s tax return. Our client’s solicitor has advised our client to make a declaration of trust stating that the children have beneficial ownership. However, have the children had beneficial ownership from the purchase, or only from when the declaration has been made?  
 
Arthur Weller replies: 
There are conflicting answers to this question in HMRC’s guidance. In HMRC’s Trusts, Settlements and Estates manual at TSEM9520, TSEM9944, and TSEM9951, it appears to be only from the date when the declaration has been made. But in HMRC’s Capital Gains manual at CG65406 and CG70291 it appears that the beneficial ownership can start from the date of purchase.