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.
- Tax Fines - HMRC 647 10
- Here we go.... 584 24
- Portuguese Resident having a UK Limited Company 52 2
- Annual to At Least Quarterly 59 3
- Capital Gains 265 3
- VAT - Check on clients business 774 31
- Probate services 270 3
- trading losses allowable? 652 10
- Anybody have that old ACCA Student Training Record (STR)? 85 1
- Digital tax accounts - what do we expect? 278 5
- Salary Sacrifce School Fees Self Assessment 237 11
- Repaying Directors Loans within 9 months 626 21
- Community Faux Pas 558 19
- Group relief for CT 107 2
- Practical experience 759 14
- Is Xero payroll as rubbish as I suspect it is? 1,232 23
- How do others remember to do things you promise for different clients? What systems? 1,507 32
- Which VAT rate to use 120 1
- Do I need to register for VAT 310 13
- Post AAT? 569 2