This video is around placing property into a trust?

And the answer is a definitive -Yes, you absolutely can.

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However, the question arises - should you do it?

If you've got a property and you want to give it to somebody, you can place it into the trust now but that will generate a capital gains tax issue. You can use something called holdover relief on placing a property into a discretionary Trust, which can defer the capital gains tax payment for as long as the trust exists.

However, once gifted you can never get any income back from that property. So if you had a property, willing to give it away, and you had no need of the income, absolutely, you can place a property into trust. But if it's a rental property, you want the income back then No, you can't do that. You could put it into trust and the rental income could go to your children or grandchildren. But, if you want the income back yourself, do not place properties into the trust.

Now, main residences, people say can I put them into a trust?

You can, but it's now owned by a separate legal entity for tax purposes. Now you've got to earn income, you've then got to pay rent to the Trust for living in that property. So the rent then gets taxed inside the trust or on the beneficiaries and now you paid two lots of income tax. Then capital gains tax is accruing against that value of that property because it's no longer a main residence, so by the time you add up all three taxes, it's almost never worthwhile putting a main residence into a Trust..

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