Pre-2006 A & M Trust
An A & M Settlement was created in 1992 for four beneficiaries, grandchildren of the Settlor.
The trustees now wish to transfer the assets to the beneficiaries and wind up the Settlement.
As was typical, the beneficiaries were given a right to income with effect from their 25th birthdays, with the Trustees given a right to hand over the capital absolutely when they see fit, subject to (what was then) the 80 year limit.
The beneficiaries were all born in the 1970s and turned 25 before the 2006-2008 changes in Trust rules.There have been no changes in the structure or the beneficiaries since inception.
Am I right, therefore, in thinking that the Settlement in question should now be regarded simply as a pre-2006 Interest in Possession Trust for CGT/IHT purposes? This would mean that there would be no Section 260 hold-over relief on the transfer of the assets to the beneficiaries, so there might be CGT to pay. On the other hand, we would not be looking at an IHT exit charge?
Thanking you in advance.
- Taxfiler - SA100 - More efficient? 642 5
- See you all on the other side 692 6
- 12Pay 459 2
- dividends 612 2
- R&D 323 1
- Quarterly Reporting - The Logistics 1,182 17
- Auto enrolment contribution rates 440 3
- How long are you waiting for appeal reply 416 4
- Borrowing money to loan to company 373 1
- Mother as Guarantor for Son's mortgage 546 5
- Seeking a tax case 642 9
- When do we qualify for state pension? 505 4
- Companies house strike off 552 3
- Tax treatment of alterations to property 429 2
- Moving to the cloud 745 9
- Iris open space/doc exchange for SATRs 216 2
- How much to charge for payroll? 904 16
- Unincorporated charity transfer to CIO 211 4
- BTC vs Digita 1,092 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 503 4
- HMRC Joint Filing 562
- Capital Contribution towards a company car 420
- Capital Reduction & Impact on EIS Shares 373
- IRIS and FRS 102 354
- Capitalising Finance Lease 327
- USA help 317
- National Minimum Wage issue on Directors joining a Workplace Pension 297
- Dormant company accounts under FRS 102 293
- Marginal rates of tax 293
- Class 2 NI 280