TSEM9640 - Ownership and income tax: implied trust: resulting trust - further principles

There are further principles relating to resulting trusts in the context of non-tax property disputes, which might also apply in the context of income tax and land and buildings:

Any alleged agreement after the date of acquisition of the property cannot give rise to a resulting trust - it must be there from the outset.

To establish a resulting trust there must be a direct contribution to the purchase of the property at/from the time the property was purchased, for example:-

• direct cash contributions
• contribution to deposit/legal expenses
• payment of mortgage instalments
• contributions of tenants’ right to buy discount.