Mark McLaughlin highlights a selection of capital gains tax issues involving trusts.
Trusts can be used for a wide variety of purposes, such as asset protection or passing family wealth down generations. From a tax perspective, trusts need to be handled carefully to prevent unexpected and unwelcome consequences.
This article highlights a selection of capital gains tax (CGT) issues. However, remember to also consider other potentially relevant taxes (e.g., inheritance tax (IHT) and income tax) in advance of any events or transactions involving trusts.
Give it away…properly!
If the trust’s creator (settlor) gifts an asset to the trust (e.g., an investment property), this will be a deemed disposal at market value for CGT purposes. This could result in a chargeable gain for the settlor, even though no proceeds are received for the property. A form
