Capital Loss - Investment Trust assigned to children?

[piazope]

I would appreciate guidence.

I had several Investment Trusts (Tech) that I 'assigned' to my children, I have now sold these at a loss.

Can I offset this loss againt future gains; in my name or the childs?

Thank you.

[johnfkavanagh]

On the assumption that "assignment" meant transferring beneficial ownership to your children, any losses realised on sale would be theirs and would be available for set-off against their future gains. Their loss (or gain) would be based on the difference between market value at the date of assignment and the sale proceeds.

There would have been a capital gains tax event on assignment and a gain or loss would have accrued at that time. Because you are obviously connected with your children for CGT purposes, any loss which arose at that time would only be available to set off against gains which may have arisen on disposals to the same person, and not against your gains generally.

John Kavanagh
UK Tax Consulting Ltd
Chartered Tax Advisers
www.uktaxconsulting.co.uk
mail@uktaxconsulting.com
Tel: 020 7060 1660
Fax: 020 7060 1663