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Where Taxpayers and Advisers Meet

CGT on FURBELOWS death benefits paid in Specie

Posts: 24
Joined: Wed Aug 06, 2008 3:28 pm

CGT on FURBELOWS death benefits paid in Specie

Postby beckied » Wed Jun 13, 2018 6:01 am

I am dealing with a FURB which was funded pre 6 April 2016 and currently holds residential investment properties. Only member died but trustees did not exercise discretion to pay benefits and thus they are now due to the Estate. I believe no IHT consequences on exit because pre 6 April 2006 funded FURB and income tax been paid on contributions. Likewise beneficiary of estate is spouse so no IHT for estate.

However, if death benefits paid out in specie will this crystallise a CGT charge as trustees making a disposal (no holdover as no IHT due, nor business assets) or is there an uplift due to death?

Any thoughts gratefully received!

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