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Ownership: there are two types of ownership:

• Legal Ownership - where the legal owner's name is usually on the ownership papers;

• Beneficial Ownership - where the person who actually benefits from the asset is the true owner.

The beneficial owner is usually the one who's liable to Capital Gains Tax.

Example 1

The deeds to a second home are in the husband's name. He is the legal owner, but both he and his wife may be entitled to the profits from the sale of the house. They are therefore joint beneficial owners and jointly liable to Capital Gains Tax.

Example 2

Assets are held in a bare trust. The trustee is the legal owner. The beneficiary of the trust is the beneficial owner and is therefore the one who is liable to Capital Gains Tax.