This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Old style A & M Trust

Rows Mum
Posts:12
Joined:Thu Oct 18, 2012 5:39 pm
Old style A & M Trust

Postby Rows Mum » Thu Oct 28, 2021 11:41 am

Hello
Would be grateful for thoughts on the following scenario:-

Trust established by Settlor in 2002 for the benefit of his 2 children. Old style A & M Trust, nothing done to re-structure it post March 2006. On attaining age 25 each beneficiary will acquire an interest in possession in his share of the trust funds, the extent of that share being determined by the trustees.

First child will attain age 25 shortly. Trust funds have huge gain. Trustees are considering winding up trust and CGT consequences of this are under consideration. As the trust is now a relevant property trust, presumably on winding up whether before or after age 25 CGT hold over would be available?

Thank you

Rows Mum

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Old style A & M Trust

Postby AGoodman » Thu Oct 28, 2021 2:38 pm

Yes

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Old style A & M Trust

Postby maths » Thu Oct 28, 2021 3:41 pm

CGT hold-over relief would not apply re an appointment out of a relevant property trust if the appointment is made within 3 months after a ten year anniversary.

No doubt AG will comment if I'm wrong.


Return to “Capital Gains Tax, CGT”